Tropicana casino group goes bust
6th May, 2008
One of America's largest casino gambling groups, Tropicana Entertainment LLC, has filed for bankruptcy.
The company - which owns 13 casinos in five US states including Las Vegas and has a total of 11,000 employees - blamed its downfall on a series of overlapping difficulties.
A downturn in tourism was one of the key factors, compounded by falling real estate values and a rapidly tightening credit market that was making it harder to secure funding.
"We ran into a perfect storm," concluded Tropicana spokesman Hud Englehart in an interview with AFP.
Licensing problems in Atlantic City are also believed to have played a role, with the New Jersey Casino Control Commission recently revoking its permit after less than one year.
Another key factor is believed to be Tropicana's purchase of Aztar Corp for $2.1 billion (£1.1 billion) in January 2007 - immediately prior to the real estate downturn that has slashed asset values.
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By Chris M
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