The owner of the Hooters Casino Hotel in Las Vegas, 155 East Tropicana, has filed for bankruptcy.
Filing a petition for reorganisation under Chapter 11 of the US Bankruptcy Code with the Nevada courts, the operator revealed that negotiations with its primary bondholder had not reached a workable solution.
Although it said failing to agree an acceptable settlement with its new bondholder - which purchased 98 per cent of the company’s debt – was regrettable, it is confident that the Chapter 11 process will enable it to emerge as a stronger business.
“Absent the significant debt payments we’re currently obligated to pay, Hooters Casino Hotel is a profitable, successful business and we look forward to completing this process to return our entire focus to running our business and serving our guests,” the company said.
All hotel and casino operations at the 696-room property will continue during the reorganisation process and the decision to file for bankruptcy protection does not impact the Hooters Restaurants franchised throughout the US by Atlanta’s Hooters of America.
