Revel Announces It’s Closing September 10th
Revel Casino Hotel says it will shut down in September after failing to find a buyer in bankruptcy court.
The company announced the move this morning, saying it would close its doors September 10th. The $2.4 billion casino opened just over two years ago, and never turned a profit. It was due to be sold at a bankruptcy court auction last week, but that auction was postponed until Thursday to allow casino officials to study bids that were received.
It will be the second of four Atlantic City casinos to shut down this year as the resort city's gambling market continues to crumble. Trump Plaza and Showboat may be closing within weeks.
Here is the full statement from Revel:
Revel AC, Inc. (the “Company” or “Revel”), the parent company of Revel Entertainment Group, LLC, announced today that Revel Casino and Hotel will cease operations no later than September 10, 2014, subject to receipt of regulatory approvals.
We regret the impact this decision has on our Revel employees who have worked so hard to maximize the potential of the property. We thank them for their professionalism and dedication; however we are faced with several unavoidable circumstances.
Despite the effort to improve the financial performance of Revel, it has not proven to be enough to put the property on a stable financial footing. This situation is compounded by the considerable non-controllable expense structure that has financially burdened the property.
In addition, challenges have arisen in our attempts to sell Revel as a going concern. While we continue to hope for a sale of Revel, in some form, through the pending bankruptcy process, Revel cannot avoid an orderly wind down of the business at this time.
Thoughtful consideration was given to the impact on our guests, our employees and the employees of our associated tenants. We hope that Revel can be a successful and vital component of Atlantic City under a proper ownership and reorganized expense structure.
We will continue to endeavor toward a placement with such an owner, but there can be no assurance as to the outcome of the pending bankruptcy process.
Revel will honor reservations and deposits while Revel remains open.
The Associated Press contributed to this report.