|Artist's rendering of The Crossover facility before construction|
A shocking email hit the inboxes of local hockey players in Austin this afternoon as the Chaparral Ice announced that their facility at The Crossover in Cedar Park has been repossessed. The multi-sport Crossover facility opened in August 2020 and hosts ice hockey in addition to other sports such as soccer and lacrosse. COVID negatively affected the facility's cash flow in a major way and set them on a path to repossession, which happened yesterday. Chaparral Ice will continue operations at their Northcross Mall location.
The email also indicates that the new management of the ice facilities at The Crossover will retain staff and continue hosting leagues and events.
Full 'release' below:
Dear friends of Chaparral Ice,
We wanted to share that Chaparral Ice at The Crossover was repossessed yesterday. We are shocked and devastated. But most of all, we want to thank you for your concerns and questions about the facility and the wonderful team that has built The Crossover into an amazing community.
So how did we get here?
Like many businesses and families, Chaparral Ice suffered greatly during the pandemic. We opened the Crossover location in August 2020, just months after COVID turned the world upside down. We could not have had a more challenging start. We exhausted all reserves to keep The Crossover and Northcross running, ensuring all employees remained paid and insured. We completed significant tenant improvements so the other businesses could move in and become active contributors to the revenue base. Despite our best efforts, and continued improvements over the 18 months since opening, our revenue fell significantly short of where we had planned. We were in close contact with our bank and landlord throughout the situation and were hopeful we could find a resolution that was acceptable to them and to us, and that was in the best interests of the community — you.
Then, on Monday, our bank decided to call the note on the facility, effectively accelerating all our payments on the loan to make the entire balance due immediately. On the same day, we received a notice of lease termination from our landlord. Our personal guarantees have been called, and without the ability to operate the business or sell it, we are left without options.
So what next?
As the shock subsides, we are regrouping. We plan to continue operations at Northcross, then see what comes next. As for The Crossover, we have some answers. New management indicated they intend to continue operations and honor all current obligations — that is good news for you. We were extremely worried about our staff and were heartened to hear the new management is extending offers to Chaparral Ice personnel to continue working at The Crossover. We are so appreciative of the team that helped support the various programs and provided great service to all of you. We will find out more as matters continue to unfold, but the short version is … it's out of our hands.
Despite this setback, the mission lives on
Building The Crossover was more than just about erecting a building and seeking a profit. Yes, those are important to any business, but first and foremost, we sought to cultivate a facility and community to serve all of you, and we knew the rest would come with time — unfortunately, that just ran out for us. But we want that dream to live on, no matter who owns or manages The Crossover. We want The Crossover to succeed and wish everyone well in that endeavor. Many of you inquired if/how you can help, and we are so appreciative of your hearts and your care. The best way to honor our legacy and mission is to keep skating, keep exercising, and keep building bonds with your family and friends that last forever. We also hope to see you soon at our Northcross location. Thank you for your support and loyalty through the years, particularly through the hard times we all have weathered, and are still weathering, together. This too shall pass. Onward.