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  |  Aug. 12, 2014 at 10:58 AM
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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.

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