• Hooters Casino Hotel in Las Vegas Files for Bankruptcy

    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

  • Rhode Island Municipality Files for Bankruptcy

    Central Falls, Rhode Island, has entered bankruptcy , driven by an overwhelming burden of pensions. The filing is somewhat ironic when considering the city’s motto of “a city with a bright future.”

    Central Falls is Rhode Island’s poorest city, with its decline beginning in the 1970s as manufacturers left the area. Crime rose as the city’s economics declined. In 1986, a Rolling Stone crowned the city the Cocaine Capital of New England.

    The march toward bankruptcy began in the past few years as Rhode Island slashed local aid to cope with the financial crisis and the recession it spawned, said state Senator Elizabeth Crowley.

    Central Falls turned to the bankruptcy courts for protection on August 1, 2011 after retirees failed to accept cuts in pensions and benefits. That pushed the municipality into insolvency, according to Robert Flanders, a former state Supreme Court justice named to oversee Central Falls finances earlier this year. The city asked the court to let it impose “a prudent plan” to adjust what it pays retirees.

    The city of about 18,000 people became the fifth U.S. community to enter bankruptcy this year. In 2010, six cities filed for Chapter 9 bankruptcy protection.

    The bankruptcy actions of municipalities demonstrate there is no shame in filing for bankruptcy. The reality of bankruptcy is that it is a legal tool that allows petitioners to reorganize their financial lives, and without much pressure from creditors. Don’t let an emotion get in the way of what is purely a business decision.

    Benjamin Brand Services – Chicago bankruptcy lawyer