Revealing Revel’s Financial Issues
– via CBS –
Bankruptcy is once again in the cards for Atlantic City’s $2.4 billion dollar casino. Today, Revel announced it was filing for Chapter 11 bankruptcy for the second time in as many years.
KYW’s Tim Jimenez reports a letter went home to employees saying they could be out of a job in August.
Revel sent out a statement saying they’re looking for a new owner and will do so through Chapter 11 bankruptcy. And the company gave its 3,100 employees letters warning they’ll shut down and could be out of work as soon as August 18th if there’s no buyer.
Roger Gros, Publisher of Global Gaming Business Magazine, says investors felt like they had no choice.
“I think they decided to kind of cut bait here and to see what that would do. Whether that would help the negotiation process and if not, I think they’re ready to close it,” Gros said.
Revel opened in April 2012 to huge expectations of being a non-gambling destination, jumpstarting AC’s fortunes. But with Revel in the red and bankruptcy last year, it hasn’t been the case.
“The concept of Revel and the reality of Revel between when it was planned and when it was open was completely at odds with each other,” Gros said.
During the process, Revel will continue to operate thanks to a $125 million debtor-in-possession loan.
Revel employees voted to unionize earlier this month. Bob McDevitt with Local 54 of Unite-HERE says they’re committed to working with all parties to save jobs.
“We believe a sale of Revel to a buyer who wants to keep the property open and retain the employees is the best thing for the workers, for Atlantic City and for Revel, and Local 54 is committed to working with all parties to save the jobs,” McDevitt said in a statement.