Gaylord Entertainment Company is ceasing operations at its centralized
Internet branch, Gaylord Digital, and anticipates the sale or closure of its various components by December 31, the Company announced
this week. Some 85 Gaylord Digital employees will have their positions eliminated, and the conclusion of operations will result in non-recurring charges
currently anticipated to be approximately $35 million net of taxes in the fourth quarter of 2000.
Through the first nine months of 2000, the
investment in Gaylord Digital resulted in negative operating cash flow of $16.8 million, contributing to the parent company’s negative operating
cash flow of $10.9 million for that period. “This action at Gaylord Digital results from our previously announced strategic review and reflects our
continuing efforts to focus on our core assets. That review continues, and our over-arching goal is to immediately strengthen profitability in all
areas of our company,” said Dennis Sullivan, president and chief executive officer.
Transactions involving Gaylord Digital components such as
Musicforce.com and Lightsource.com are in negotiation. Proceeds from these transactions, if consummated, are not expected to materially affect
the amount of the nonrecurring charges mentioned above. Musicforce.com, primarily an e-commerce site, and Lightsource.com, an Internet
broadcasting site, were the two original components of Gaylord Digital.
