In late June, the Revel Casino Hotel in Atlantic City, N.J., filed for bankruptcy. The casino hotel will close for good if a buyer isn't found in court, and proceedings that were supposed to take place this week have been postponed until Aug. 14 to allow more time to evaluate bids on the property.
Philly.com reported that Revel has already notified its 3,140 employees that they may lose their jobs as soon as Aug. 18 if the casino is unable to find a buyer. The postponement notice was filed with the U.S. Bankruptcy Court in Camden, N.J., and did not identify bidders or indicate how many qualified bids Revel had received. There is also no initial, or stalking horse, bidder for the auction, though Atlantic City mayor Don Guardian said in July that six potential buyers are interested in the casino.
According to Reuters, the resort cost $2.4 billion to build, and opened in April 2012. However, new gaming options in Pennsylvania and Delaware have hurt Atlantic City's gaming scene, with Revel reported a loss of $2 million per week, even during the summer season. Buyers interested in the Revel were required to provide a cash deposit of 10 percent, proof of finances to complete the deal and evidence they were able to obtain the necessary licenses to operate the casino. Bids on portions of business are also being considered.
Revel isn't the only company taking heat during Atlantic City's downturn. The Atlantic Club casino closed in January, while the Showboat and Trump Plaza casinos are preparing to close in the coming weeks. In the midst of all this, Donald Trump filed a lawsuit asking that his name be removed from the failing Trump Plaza, as well as the nearby Trump Taj Mahal. Trump retains a 10 percent stake in Trump Entertainment Resorts, which owns the Trump-branded casinos in Atlantic City.
According to the Washington Post, the basis of Trump's lawsuit is that the company is breaching the licensing agreement that allows buildings to use his name, specifically that casinos be managed under “high standards of quality and luxury,” and fears the closure could damage the Trump brand.
“I want it off both of them,” Trump told Casino.org. “I’ve been away from Atlantic City for many years. People think we operate (the company), and we don’t. It’s not us. It’s not me.”