The Hooters Girls well known sex appeal could not save the Hooters Casino and Hotel in Las Vegas from having to apply for Bankruptcy.
155 East Tropicana LLC, owners of Hooters Casino Hotel in Las Vegas, sought Chapter 11 protection and filed for Bankruptcy on Monday. Public records filed with the U.S. Bankruptcy Court for Nevada list assets not exceeding $50 million, and liabilities well above $160 million.
"We regret that we have been unable to reach an acceptable settlement with our new bondholder," the company said. "We are confident that an orderly and transparent Chapter 11 process will provide the company with the opportunity to properly restructure its balance sheet and emerge as a stronger company."
“This action in no way affects the operation of the more than 430 Hooters Restaurants in 44 states and 27 countries which are owned or franchised by Atlanta based Hooters of America, LLC.” The company added. Sister company 155 East Tropicana Finance Corp. also filed Chapter 11 bankruptcy petition.
It is difficult to understand what has gone wrong. The company's financial show Hooters Casino Hotel has one of the highest proportion of non-gaming to gaming income. It almost appears Hooters customers have remarkably little interest for anything other than the world famous Hooters Girls. Fact of the matter, Hooters Casino built operating losses ever since it opened in 2006: $5.55 million in 2006, $0.96m in 2007, $6.19m in 2008, and $4.26m for the first 9 months of 2009.
Things go much better in the non-gaming department, starting with the hotel's restaurants, among which the second largest Hooters restaurant in the world.
Hooters patrons can relax; The Hooters Casino Hotel remains open for business. Under Chapter 11 Bankrupcy Petition, companies may continue to operate while a plan of reorganization is drafted and implemented, subject to creditors' approval.