Not surprisingly, financially troubled Great American Journeys canceled all
Northwest riverboat cruises for the 2006 season. Its vessel, the 160-passenger
Columbia Queen ceased sailing months ago, and the U.S. Maritime Administration—which
had held the mortgage on the ship—recently sold the note to Ambassadors Travel
International, owner of American West Steamboat, and a competitor of Great
American Journeys. But Douglas Toms, co-owner of Great American Journeys, has
told Seattle
media he hopes to get back in business with the ship next year after he is able
to secure new investors. Great American laid off most staff late last year, and
owes thousands of dollars in unpaid agent commissions. Toms said he is
continuing to negotiate with a group of New
Jersey investors interested in forming a new company
to operate the ship. He said Great American still holds operating rights to the
ship, and has no intention of selling to Ambassadors. That said, if Great American
is behind in its mortgage payments, it is a sticky situation legally. Toms said
Great American owes $8.7 million in principal payments on the mortgage, which
Ambassadors reportedly bought for $5 million. To add to the difficulty of the
situation, Great American Journeys—not in bankruptcy—is a division of a larger
travel group owned by Simplot and Toms, which ran Glacier Bay Cruiseline; the
latter filed for Chapter 11 bankruptcy reorganization last year.
