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Hooters loses $5.05 million in 2nd quarter
Company warns it might seek bankruptcy protection
Friday, Aug. 14, 2009 | 3:41 p.m.
Beyond the Sun
The company that owns the Hooters Casino Hotel in Las Vegas today said it swung to a loss in the second quarter and again warned it may seek bankruptcy protection if it can't restructure operations, refinance its debt or gain forbearance deals from lenders.
Hooters lost $5.05 million in the quarter vs. a profit of $2.44 million in 2008's second quarter. Revenue fell from $16.435 million to $11.67 million, said the company, which reiterated it has been unable to make recent debt payments.
The 696-room property on Tropicana Avenue, with about $164 million in debt and other liabilities, said results suffered in the quarter because of the decline in visitation to Las Vegas, the closure of 235 rooms in May for a plumbing job and traffic disruptions.
Hooters owner, 155 East Tropicana LLC said a project for installation of utilities for a new terminal at McCarran International Airport has disrupted the Tropicana Avenue auto traffic flow into its property as well as walk-in traffic to the property via the walk-way between Hooter's and the MGM Grand hotel-casino.
"To counter these business disruptions and economic conditions, we have continued to focus on managing costs. Overall, operating expenses declined $2.9 million from the same quarter prior year. Operating costs are expected to continue to decline in the third quarter of 2009 as we continue to target cost reductions,'' Hooters owner said in a regulatory filing.
In the second quarter, casino revenue tumbled at Hooters 37.2 percent and hotel revenue was off 33 percent as the average daily room rate fell 16 percent to $58 and the occupancy rate fell year-over-year from 97.6 percent to 84.6 percent.
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The Sun
Locally owned and independent for more than 50 years.
the fact they made 11 million is amazing.
who goes to this place?
Stop blaming your lack of visitors on silly traffic disruptions. Hooters has a great brand that they need to use to their advantage. Invest in some buses and market to all of the Southern California college campuses. How about busing in the Camp Pendelton Marines? My point is that this article is full of excuses rather than strategy to change their situation.
The Hooters brand has deteriorated at the property because management did not hold true to their theme. I see evidence of this throughout the physical plant as well as in the lack of pride and enthusiasm for the vision of orange and woods etc.. I am not a fan of sublet enterprises/booths unless they also strengthen/honor the property brand, and I think improvement can be made in that area as well. The property is too young for the public areas to look so tired.
Looks like the thieves in the offices that MGM dumped walked across the street.
Hooters Hotel & Casino was a poorly implemented vision.
If you have only ever been to their restaurants, you would think that the casino who be a bolder expression of that same vision: beautiful women, smiling faces, great customer service.
Well guess what? That is ONLY true in the restaurant, not the gaming floor or any other area of the casino.
I'd be willing to visit and gamble at a second tier property if it was truly a Hooter's girl that brough me a drink, spun the roullete wheel, etc...
Instead, just the same 'ole same 'ole...might as well just go to the Klondike.
What does the name hooters really mean? What do owls have to do with LV?
No wonder they are doing poorly. Fried this, fried that and jumbo grand canyons. I like Peppermills, personally. Bobo from Florida
ummmmmmmmmmm boobs