Thursday, Feb. 1, 2001 | 11:28 a.m.
The Regent Las Vegas denied charges raised by its former chief operating officer in a lawsuit that a locals-oriented marketing plan helped drive the resort into bankruptcy.
Denny Weddle, spokesman for the Regent, said the Regent's financial difficulties were caused in large part by delays in opening the Regent in the summer of 1999. And he said that the resort's former focus on the high-end market, "with no regards for locals," contributed to the Regent's struggles.
"Jim (Fonseca) was responsible for the original plan," Weddle said. "He had no awareness of, and was not interested in, the locals market."
Fonseca, fired from the Regent in September 1999, filed suit against Regent owner Swiss Casinos of America Inc. Tuesday as a shareholder of the company. He claimed the marketing program implemented by Chief Executive Darrell Luery, hired in November 1999, had "disastrous effects for the property."
"(General contractor J.A.) Jones didn't get us in on time, so these plans didn't have time to work anyway," Weddle said. "Not being able to open on time was a huge part (of the eventual bankruptcy filing)."
In his lawsuit, Fonseca claimed Swiss Casinos entered into a settlement agreement with J.A. Jones in December 1998 after it became apparent the project wouldn't open on time. Fonseca said an additional $23 million was paid to J.A. Jones, and the contractor agreed to complete the project by April 30, 1999. The Regent did not open until July 1999.
Weddle said he didn't understand why Fonseca attacked Luery, since Fonseca was succeeded by Brian McMullen, not Luery.
"That locals market changeover has happened as we went into bankruptcy," Weddle said. "That's been the thrust of what we've been striving for, to increase the locals market."
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