The Hooters hotel-casino in Las Vegas will we auctioned off in the face of a bankruptcy filed on August 1 to block foreclosure threatened by Canpartners Realty Holding Company IV, which is responsible for $178 million of the debt the casino is in.
The 696-room property on Tropicana Avenue has not been doing well for quite some time and will be auctioned by February 17, 2012.
Vegas restaurant-casino Hooters has filed for Chapter 11 bankruptcy, citing assets worth $10-50 million against liabilities of $162 million. After being re-branded as Hooters in 2006, the hotel has suffered from mixed reviews and could be bought out. They are seeking to restructure their debt and continue business as usual.
Perhaps this may have to do with the location? It’s not in the best spot (off the Strip), is right near the Tropicana (as seen in this photo), and they even had an offer from Hedwigs Las Vegas Top Tier to buy it and re-brand for $225 million with a $130 million re-fit, but it fell through.
Hedwig’s Las Vegas Top Tier, of California, failed to make a $500,000 nonrefundable payment on Friday. Which lead Hooters to cancel the sale. Hedwig’s blamed the market for the problem.
In March, Hedwigs planned to spend $225 million to buy the property and spend $130 million on renovations and a name change. Hedwigs investment group has put up $6 million in nonrefundable fees and other costs toward the purchase, too bad for Hedwigs, really good for Hooters.
According to the Review-Journal, Hooters president and minority share owner Richard Hessling said he’ll either continue to operate, accept another sale offer, or look at expanding, but declined to discuss the Hedwigs deal further.
Hooters put $130 million into renovating the former Hotel San Remo before opening in February 2006.