Great American River Journeys struggling to stay afloat

Amid rumors that it is about to follow its sister company, Glacier Bay Cruiseline, into bankruptcy, Seattle-based Great American River Journeys, an operator of luxury Northwest riverboat cruises, has laid off staff, delayed payments to some travel agents and is negotiating with its bankers to come up with the money to stay in business.

"It's correct. We are waiting for refinancing, but our doors are still open,'' said Douglas Toms of Olympia who owns the company with his partner, Don Simplot of Idaho.

Great American River Journeys launched its first season last spring with luxury cruises along the Columbia, Snake and Willamette rivers aboard the refurbished Columbia Queen, an early American riverboat moored during the season off Columbia Street in Vancouver, Wa. Toms and Simplot purchased the ship in 2004 after its owner, the Delta Queen Steamboat Company, ceased operations.

A decision on whether there will be a 2006 season will come in the next few weeks, Toms said. Sailings are set to begin February 17 with nine-day cruises to historic Northwest ports of call in Oregon, Idaho and Washington.

If the cruises are cancelled, Toms said customers who have paid would be given refunds or arrangements would be made to accommodate them on other cruises.

Meanwhile, the ship, a 160-passenger luxury boat with Tiffany-designed stained glass chandeliers and plush furnishings, remains at its winter dock at the Sundial Marine shipyard in Troutdale, Oregon.

Toms said the company's financial struggles stemmed from personal financial problems among the partners and were unrelated to those of Glacier Bay Cruiseline which filed for Chapter 11 bankruptcy reorganization in October, and cancelled its 2006 season in Alaska.

Toms and Simplot also own the Coastal Hotel Group, a chain of luxury boutique hotels including the Salish Lodge at Snoqualmie Falls. Toms said those properties are run separately and are unaffected by the problems.

Michael Lomax, the founding president of Great American, resigned in October. In an e-mail message, Lomax said he quit because Toms and Simplot "demonstrated a lack of funds to sustain the Glacier Bay Cruiseline operation."

Great American laid off most of its Seattle staff last week, and travel agents have complained about not being paid commissions.

"I have probably six or seven agents that have not received anything from them in commissions since August,'' said Pat Funk,director of the Association of Retail Travel Agents, an organization that represents 3,500 agents nationwide.

"They haven't been answering their phones and their (voice) mail boxes are full. This tells me they're not looking for business.''

Toms, reached at his home in Olympia, said the offices were closed for the holidays, and that about five staffers continue to work at the company.

"For those who weren't paid, we issue our apologies, but they will be paid.''

At least one travel insurance company, Travelex Insurance Services, has put the company on a list of suppliers it will no longer cover.

Great American was added to the list on December 22 after the insurer received several complaints, said spokeswoman Chris Buggy.

"We haven't been able to get a hold of anyone in the organization,'' she said.

Carol Pucci: 206-464-3701 or cpucci@seattletimes.com