Atlantic Club Casino Seeks Bankruptcy Protection
by Wayne Parry
The Associated Press
November 7, 2013
ATLANTIC CITY, N.J. (AP) — The struggling Atlantic City casino market reached a dubious milestone this week: Half of its 12 casinos have filed for bankruptcy protection in the past six years.
The most recent was The Atlantic Club Casino Hotel, which filed for Chapter 11 bankruptcy protection late Wednesday. The casino formerly known as the Atlantic City Hilton says it will remain open as it seeks a buyer.
Its first hearing in federal bankruptcy court could be held as soon as Friday.
Michael Frawley, the casino’s chief operating officer, said its strategy of offering low-priced gambling, food and entertainment has been working but not fast enough. About 70 percent of the casino’s floor consists of penny slot machines.
“We believe in our property’s positioning and the value-centric niche we committed to nearly 18 months ago,” he said. “Our creative branding campaign and the tremendous efforts of our employees have resulted in property growth within a continually challenged market. Unfortunately, the market has taken longer to rebound than we had hoped.”
Frawley said the casino, hotel and restaurants will remain open and operate on normal schedules.
“It will be business as usual at The Atlantic Club,” he said.
However, in an affidavit filed with the bankruptcy court, Eric Matejevich, co-chief operating officer of the casino’s parent company, wrote that the company “does not have sufficient cash resources or committed financing to operate The Atlantic Club and service ordinary course obligations for an extended time period.”
Read the full article online here.
Contact: Michael Murphy
Email: [email protected]