Hooters Hotel-Casino goes bust
If you want to go see a bust, Hooters may well be the sort of establishment you would look out for but going bust in financial terms is never a good thing. That’s why there will not be too much laughter around the Hooters Hotel and Casino venture on the Las Vegas Strip. The owners of the venture filed for bankruptcy with their list of assets being much smaller than their total liabilities. When it gets to the stage, with assets standing at no more than $50m with liabilities of $162m, a company is in serious trouble and major cash flow problems have blighted the firm.
Hooters is not a place for all the family
It is said that the casino has never made any real amount of money, which may be for a number of reasons. After all, you would expect that a casino should be more than capable of bringing in money, especially with the odds being tipped in favour of the house. However, with so much competition in Vegas, it can be difficult for some casinos to stand out and of course; Hooters may not be an establishment that everyone would be happy visiting. For all that Las Vegas has a gambling and gaming image, it is still a place where families will visit and husbands and wives will go together. This means that many people who may have used Hooters facilities would decide that it was neither the time nor the place to visit this sort of establishment. When you have a business plan that pretty much excludes half of the population right away, you are in considerable trouble if you are unable to attract large numbers of the other half of the population.
Negative feedback can kill a business
It seems that the casino has also suffered a great deal of negative feedback from the customers of the casino and the hotel and in this day and age, negative publicity can be cause very serious damage to a company. When you consider all of these issues, it is perhaps no surprise that the venture is in so much trouble and you may wonder how it managed to hang on for so long. The current owners are hoping to be allowed to restructure their debt in a way that will allow them to trade out of their debt but it is reported that a number of other casinos in the local area are preparing a bid for the venture.