The Hooters Casino Hotel filed for Chapter 11 bankruptcy protection in an attempt to reorganize its debt. The filing is for the casino/hotel in Las Vegas and does not affect any of the over 430 Hooters Restaurants across the nation.
Hotel owner 155 East Tropicana LLC released a statement to reassure Hooters patrons. “This action in no way affects the operation of more than 430 Hooters Restaurants in 44 states and 27 countries which are owned or franchised by Atlanta based Hooters of America LLC” it said on August 1, 2011.
The corporation formed in 2004 to purchase property that would become the world’s first Hooters-themed hotel and casino. The financial struggles came as a result of the recession that has kept visitors from traveling to Las Vegas over the past few years and motivated rival hotels to slash room rates, according to the bankruptcy filing.
115 East Tropicana “has been faced with declining hotel and casino revenues based on increased price and promotional competition, additional properties opening on the Las Vegas Strip, reduced consumer spending, a tightened credit market, and an overall weakened economy,” the company’s chief financial officer said.
The quote from the CFO of 115 East Tropicana is a laundry list of woes, ones that illustrate how tough it is to operate a business successfully in an adverse environment. However, instead of trying to ride out the poor economy, they turned to bankruptcy as a way to save the business from complete financial ruin. Anyone who is in a similar situation on a personal level needs to take this reality to heart and file bankruptcy before it’s too late to salvage anything.
Benjamin Brand Services – Chicago bankruptcy attorney