• 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

  • Desperate Housewife Eva Longoria in Desperate Bankruptcy Trouble over Nightclub

    The closing of the nightclub Eve, partly owned by “Desperate Housewives” star Eva Longoria, has set off a new round in the legal battle for control of its bankrupt parent company, Beso, LLC. The nightclub is located in the Crystals mall in Las Vegas.

    Ronen Nachum, a Beso creditor, and Mali Nachum, part owner, asked U.S. Bankruptcy Court Judge Mike Nakagawa to place a trustee in charge of Beso shortly after the closure of the nightclub. The judge denied the request to move quickly on the matter, but left open the possibility of hearing the request on a normal timeline.

    Beso owed Crystals mall, part of MGM Resorts International’s CityCenter complex, $2.3 million in back rent at the time of filing for Chapter 11 in January 2011. The mall is the largest creditor in the case. Beso has run up hundreds of thousands of dollars more in unpaid bills since the filing.

    Eve was the only nightclub at Crystals, and tried to position itself as a Las Vegas magnet for entertainment celebrities with Longoria as the marquee owner.

    However, infighting among the owners erupted in 2010 which lead to a protective order being issued against Ronen Nachum.

    Bank account garnishments, unpaid rent to Crystals, a contractor’s lien and ongoing losses drove Beso to file bankruptcy in spite of grossing $14.6 million in 2010.

    Benjamin Brand Services – Chicago bankruptcy attorney