Creditor Purchases Las Vegas Hooters Franchise in Bankruptcy Court
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Creditor Purchases Las Vegas Hooters Franchise in Bankruptcy Court

March 1, 2012

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The primary debt holder of a hotel-casino branded under the Hooters name in Las Vegas is the new owner of the resort after no outside bidders attended the resort’s recent bankruptcy auction.

The debt holder, Canpartners Realty Holding Co., will purchase the Hooters property, which consists of 696 guest rooms and is located just east of the Las Vegas Strip, according to a report from Business Insider.

The bankruptcy sale was approved by U.S. Bankruptcy Judge Bruce Markell, and the winning bid for the resort was reportedly worth $60 million. The deal will be closed by March 30, according to sources.

During the transition in ownership, the new owner plans to keep operations running normally, and sources expect all creditors of this particular Hooters chain to receive full compensation for the resort’s unpaid debts.

The hotel and casino had filed for bankruptcy protection last August in order to thwart a planned foreclosure action by Canpartners. Now, instead of bringing down the foreclosure hammer on Hooters, Canpartners instead owns the resort.

Plans call for operations to keep running as usual during the transition, and for all Hooters creditors to be paid in full. The entire city of Las Vegas took a huge financial hit during the economic recession that began in 2009, and the city is only now beginning to survey the economic wreckage left behind after the economy took a trip south.

The city’s economic heart is its resorts and casinos, and consumers shied away from the city in the last few years thanks to increasing unemployment, tighter credit, and the rising costs of air travel.

Despite efforts by hotels and casinos to lure customers with cheap hotel rooms and cheaper food, the high costs of reaching the desert city prevented many would-be tourists from visiting Las Vegas.

Many of the more established casinos, such as Caesar’s Palace and MGM Grand, were better prepared to weather the financial storm than relative newcomers to the hotel-casino industry, such as the Hooters resort.

Thanks to the bankruptcy auction, however, the Hooters dream remains alive in Las Vegas, as the resort’s biggest creditor looks to save the struggling franchise.


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