Gaylord Falls After Flooding Forces Opryland Country Music Resort to Close
Gaylord Entertainment Co., owner of country music’s Grand Ole Opry, fell the most in a year after the worst flooding in a half-century closed the Opryland resort in Tennessee and the company withdrew its 2010 profit forecast.
Gaylord declined $3.94, or 15 percent, to $28.81 at 11:27 a.m. in New York Stock Exchange composite trading, after dropping as much as 13 percent, the most since May 12, 2009. The shares had risen 71 percent this year before today.
The home of country’s music’s showcase theater will be closed for months, the Nashville-based company said today in a statement. The resort was flooded this morning after the Cumberland River breached levees. About 1,500 hotel guests and employees were evacuated Sunday. Gaylord said its flood insurance coverage is limited to $50 million. The company gave no estimate of damages.
The company, which is scheduled to report earnings today, withdrew its 2010 earnings forecast, saying financial results will likely be affected in the next two quarters, according to the statement.
To contact the reporter on this story: James Callan in New York at email@example.com.