account
search
search

Revel to close down Atlantic City casino

Atlantic City’s glitzy Revel Casino Hotel announced today it will shut its doors leading to around 3,200 layoffs.
By Ananth Baliga Follow @antbaliga Contact the Author   |   Aug. 12, 2014 at 10:58 AM
ATLANTIC CITY, N.J., Aug. 12 (UPI) -- Revel Casino announced Tuesday it will close down its Atlantic City casino September 10, after failing to find a buyer or to improve its financial performance.

The casino has said that it will continue attempts to find a buyer by September 10, otherwise 3,200 employees will lose their jobs. While Atlantic City mayor Don Guardian said there were half a dozen qualified buyers for the property, the casino has failed to receive an offers from any of them.

"While we continue to hope for a sale of Revel, in some form, through the pending bankruptcy process, Revel cannot avoid an orderly wind down of the business at this time," the hotel said in a statement.

The hotel filed for bankruptcy earlier this summer for the second time in two years. The hotel was developed for a cost of $2.6 billion and opened only two years ago. The company posted an operating loss of $21.7 million for the first quarter of 2014.

The casino was planned pre-financial crisis and has had to face multiple setbacks post 2008, including Morgan Stanley, its principal owner, walking away from the $1 billion investment.

Atlantic City has seen four casinos shut down this year, taking the city's unemployment rate to 13.1 percent, double that of the state of New Jersey.

Related UPI Stories
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
x
Feedback