In a move that
could help put its gambling business up for auction, the Atlantic Club Casino
Hotel filed for Chapter 11 bankruptcy protection, according to multiple media
reports.
The casino is
owned by Colony Capital LLC, a California buyout
firm. It had been trying to sell to Rational Group, a company that owns online
gambling site PokerStars.
The bankruptcy filing
is just the latest bit of bad news for Atlantic City, which has seen gambling
revenues fall because of increased competition in states like Pennsylvania and
New York.
Here's more from
the Wall Street Journal:
Atlantic Club
pursued a marketing scheme designed to a steady stream of local gamblers with
modest prices. The strategy paid off in the form of increased revenues, but the
casino was still on track to lose money.
Early papers filed in the U.S. Bankruptcy Court in Camden, N.J., estimate the Atlantic Club's debts at $10 million to $50 million, with an unknown amount of pension liabilities topping the list.
Early papers filed in the U.S. Bankruptcy Court in Camden, N.J., estimate the Atlantic Club's debts at $10 million to $50 million, with an unknown amount of pension liabilities topping the list.
Source: Philadelphia
Business Journal
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