A new casino bankruptcy hit the Atlantic City scene, and despite “fanfare” and a well-regarded presence, Revel is already heading for Chapter 11 protection in the beachside gambling destination in New Jersey.
The new casino bankruptcy comes well less than a year after Revel’s April launch, and WPIX in the area reports that hopes of an Atlantic City revamp — ones that unluckily came during one of the greatest and most devastating storms the party mecca had seen in many decades — fell flat for the venture:
“The casino has failed to resonate with gamblers in Atlantic City, which had looked to the casino as a catalyst for the ailing gambling town’s revival. Atlantic City now has stiff competition from casinos in Pennsylvania, Queens, Westchester and Connecticut .. The Chapter 11 bankruptcy declaration is designed to reduce its debt load and place the casino on firmer financial footing. The company’s chief executive spinned the news as a positive.”
Indeed, the new casino bankruptcy for the $2.4 billion property happened quickly, but Revel flak say the filing allows its operators to remain afloat and open in Atlantic City.
Kevin DeSanctis, Revel’s CEO, said as the new casino bankruptcy was announced:
“Today’s announcement is a positive step for Revel … The agreement we have reached with our lenders will ensure that the hundreds of thousands of guests who visit Revel every year will continue to enjoy a signature Revel experience in our world-class facility.”
The news puts a bit of a damper on Atlantic City’s revitalization efforts after massive destruction was visited upon it during Sandy, and Michael Drewniak, press secretary for Gov. Chris Christie, softened the blow by assuring locals and tourists:
“We are committed to the resurgence of Atlantic City, the tourism district, and the many efforts currently under way to bring world-class attractions and entertainment to the city. A rejuvenated Revel will remain an integral part of that landscape, as it continues full operations as a premiere hotel, gaming and top-flight entertainment hub for the city, in addition to employing more than 2,000 people.”
“Most importantly, none of those things that make Revel among Atlantic City’s highest-profile attractions will change, as Revel uses this new financial flexibility and the continued backing of its investors to grow the business and be part of Atlantic City’s expansion.”
The new casino’s bankruptcy is one of several setbacks that face Revel, and construction of the facility was only completed in 2011 after being held up due to recession-related funding issues and a major bank pull-out.