Hooters hotel-casino narrows loss, says bankruptcy possible
The small Hooters hotel-casino in Las Vegas narrowed its loss in the fourth quarter, its owner reported today.
The owner, 155 East Tropicana, said in its annual report it lost $3.758 million on net revenue of $11 million during the quarter ended Dec. 31. That compares to a loss of $8.238 million on net revenue of $13.3 million in 2008’s fourth quarter.
Hooters’ owner said the company, which is struggling to service $160 million in debt, remains in default with lenders after failing to make payments due last April and October.
155 East Tropicana reiterated what it said in its third quarter report: It remains in discussions with lenders about restructuring its debt.
"We cannot be assured that we would be successful in completing a refinancing or restructuring. If we are unable to do so, we may determine to seek protection under Chapter 11 of the U.S. Bankruptcy Code," the company said today, adding it doesn’t have enough cash to make interest payments due Thursday and in October.
Hooters, formerly the Hotel San Remo Casino and Resort, said hotel revenue in 2009 fell 27.3 percent to $15 million as the recession limited travel to Las Vegas. This number, which includes room revenue, retail revenue and other hotel revenue, was affected by a decline in the average daily room rate from $66 to $49.
Hotel occupancy at the 696-room property fell from 91.6 percent to 87 percent.