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Stumblegaming:
Boyd Gaming makes offer to buy Station Casinos
Published Wednesday, Dec. 16, 2009 | 1:18 p.m.
Updated Wednesday, Dec. 16, 2009 | 4:02 p.m.
Sun Archives
- Creditors press for independent examiner in Station bankruptcy (11-11-2009)
- Boyd advances effort to acquire Station Casinos assets (11-1-2009)
- Boyd Gaming sees profit fall as locals market takes hit (10-27-2009)
- Station Casinos wants more time to restructure finances (10-16-2009)
- Judge grants request of Station Casinos creditors to probe 2007 deal (9-30-2009)
- Station Casinos opposes creditors’ request to probe 2007 deal (9-29-2009)
- Station Casinos wants ‘breathing room’ from employee wage suit (9-28-2009)
- Station Casinos details lease arrangement, rejection of Boyd (9-26-2009)
- Study: Move to take Station Casinos private was fair (9-23-2009)
- Winners begin to emerge in fight for Station assets (9-11-2009)
- Lenders want study on Station's rejection of Boyd, other issues (9-2-2009)
- Judge delays key part in Station bankruptcy case (9-1-2009)
- Creditors probe deal that took Station private (8-27-2009)
- Station’s legal battle heats up in bankruptcy case (8-24-2009)
Boyd Gaming Corp. of Las Vegas today made another offer to buy Station Casinos Inc. -- this one for $2.45 billion for the company with 18 casinos and hotel-casinos in Southern Nevada.
With Station carrying $6.8 billion in debt and other liabilities and operating in Chapter 11 bankruptcy, acceptance of the $2.45 billion offer likely would cause creditors and investors to take billions of dollars in losses.
But, Boyd Gaming officials said, the $2.45 billion in cash and assumed debt represents today’s economic realities that have slashed the value of Station’s hotel-casino properties.
Station, which also operates a big casino for an Indian tribe in the Sacramento area, said today its board, advisors and stakeholders would review Boyd's latest offer.
Station earlier this year rejected a more limited $950 million offer from Boyd for certain Station assets.
"The company is currently in the process of negotiating with its creditors toward an overall plan of reorganization that is in the best interests of the company and its stakeholders. The company’s exclusive period to propose a plan of reorganization was recently extended by the court until March 25, 2010. To date, the board has made no determination to pursue, nor has the company taken any steps toward pursuing, a sale of all or any portion of the company’s assets,'' spokeswoman Lori Nelson said.
Boyd, one of just a few gaming companies considered to be in sound financial shape and capable of buying Station without over-leveraging itself, has been persistent in pursuit of Station.
And Station, the Las Vegas locals’ market leader, has consistently rejected Boyd’s expressions of interest.
Today’s offer was nonbinding and is subject to due diligence by Boyd.
"Combining Station with our current portfolio is consistent with our strategy of growing our presence in the Las Vegas locals market. The transaction contemplated by this proposal will allow us to leverage our 35 years of operating experience in the Las Vegas market to maximize the full potential of Station’s assets. Given this compelling strategic fit, and Boyd Gaming’s position as a licensed operator with strong financial capabilities, we continue to believe that the acquisition of the Station assets by Boyd Gaming is the optimal way forward for Station and will create the most value for Station’s creditors," Boyd said in a letter to Station.
"Importantly, Boyd Gaming is in the best position to execute a smooth transition of ownership and operate the Station properties efficiently from day one. We believe our proposal is in the best interests of Station’s employees, vendors, customers, and the Las Vegas community as it will help to strengthen the local economy and preserve thousands of jobs," the Boyd letter said. "We believe our offer price represents fair value to Station’s stakeholders and takes into account current market conditions, our deep knowledge of the gaming industry and Station’s publicly disclosed financial performance."
"Our proposal to acquire both the 'OpCo Assets’ and the 'PropCo Assets’ reflects the belief that there is more value in keeping these assets together rather than separating them. We believe that combining Station’s assets with Boyd Gaming will result in the greatest number of benefits for stakeholders," the letter said.
(Station has two groups of properties, OpCo and PropCo).
The line in the letter about keeping the assets together is an apparent reference to discussion in Station’s bankruptcy case that, if a compromise isn’t reached with lenders, the PropCo lenders may take control of four of Station’s top-performing casino-hotels.
Those properties – Red Rock Resort, Sunset Station, Boulder Station and Palace Station – are encumbered by $2.475 billion in debt.
With the recession reducing revenue and cash flow at Station, and other creditors attacking the $2.475 billion mortgage, Station last week gained bankruptcy court approval to temporarily lower the rent it pays to itself to lease those four properties. The rental payments have been covering the mortgage.
Boyd, a creditor in Station’s case after picking up some $2 million of Station debt, could face antitrust or competition questions if it bought all of Station.
That’s because such a deal would combine Station with four of Boyd’s generally locally-oriented properties: Sam’s Town, the Gold Coast, the Orleans and the Suncoast. Boyd is also a big operator in downtown Las Vegas, where Station isn’t a player.
Nevada gaming regulators and potentially others could look at the competitive effects of such a deal.
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This is NOT good for Las Vegas! We need a halt to the monopolizing of gambling businesses here in the valley.
i somewhat agree with you on to much for 1 company, but, boyd seems to run a better place than those crooks that brought stations down, my wife and i were loyal sunset visitors for many years but place was going downhill. feel for the nice employees i've met thru the years. please boyd, keep all the current employees at these locations if you get them
i like both casino companies, there still way better than the pics with too much lipstick on , I mean, these companies located on the Strip....
I don't get how companies with sever debt and owing a bunch to everyone can buy stuff..Nothing against Boyd, but I owe a bunch and I cant buy a thing!! How do they do it..Cash flow is down, tourism is down and yet wall street funds this stuff or other investors?
If someone can tell me how, I would appreciate getting my life's financial situation done the same way!!
Well whether you like it not, it's the best thing in the end. Better that Boyd should take them over than lose a few thousand jobs. When the economy stabilizes in the future I think you'll see a lot of these weighty corporations looking for new blood to sell off some of their properties to. In the meantime, beggars can't be choosers.
I am hoping that Boyd pulls this off. They are a wonderful operator that knows how to run local properties. They understand how to properly manage expenses and for the price tag of $2.4 billion.....that's a steal.
They should have no problems making the interest payments at that price.
S711
Station casino's are lean and mean. Very attractive investmant and good foresight on Boyd's part.
retiredyoungster - Companies operate in a different financial world than you and I. First of all, Boyd has a Revolver Loan of over $1 billion that they can draw from. Plus, when you consider the cash flows these properties will generate at a price of $2.4 billion.....you will have a positive NPV, which is what the banks/lenders ultimately look at. Whatever model Boyd used, it must have had a positive NPV at an asking price of $2.4 billion in order to make this offer.
I think they are right in their assumptions.
S711
"Station casino's are lean and mean."
You forgot bankrupt.
"please boyd, keep all the current employees at these locations if you get them"
Ever seen a takeover where all employees are kept? I haven't...
The problem is these companies (which are publicly held) are like the Government - they don't listen to their stock holders.
Their sheer ARROGANCE of having an "Ivy League" education makes them think they can make no mistakes, that the opinion of others in an organization is nothing and hence they run companies into the ground while padding their pockets.
Now one company (it appears to be Boyd) in this case has done good and can gobble up another miss run company like Station. But Boyd is no better he will just get a monopoly, more than likely keep some of Station's upper management or hire some more of these arrogant people and run another company into the ground.
Until Vegas either remembers it's roots and treats employees and customers with respect or until we get some new blood in this town, the vicious cycle will continue.
But I am fearful that the arrogance will not stop and by allowing monopolies you make it impossible for new blood to come into town - therefore you will see nothing but further decline in our City.
I see the same people commenting all the time. Retiredyoungster, #1, if your financial situation is so dire that you cant afford things, " Work Harder" !! #2, Sinatra711, your comments and analyzing explain why you're not working in the casino industry. And if you are in the casino industry, it explains why so many of these companies are in trouble.
Jerry1049 - I'm sorry, but I must disagree with you on this one. While you make some good points about arrogance in this city, I don't believe that to be the case with Boyd. Remember, this is the company that made the decision to place the Echelon Project on hold. If they were arrogant, they would have moved forward with it.
Boyd has passed on more deals and developments than most people know. They are a smart operator and have consistently had a strong balance sheet. Even in these tough times. I think this is a case of an Opportunity Buy. You can't purchase the materials required for the properties they will be obtaining from Stations, let alone the land for $2.4 billion.
My guess is that if they buy Stations, they sell off a few of the properties and keep the majority of them in strategic locations.
S711
Nico777 - I am currently working in the casino industry. Been doing so for a very long time. And what do you do?
S711
What do you do Sinatra? Dealer? Quit trying to sound like you're a insider!! Boyd has a tremendous amount of debt load, their notes are now just starting to become due, if the present market coditions dont change, they will be another operator who has to negotiate with their bond holders for extentions and debt reduction.
And by the way Sinatra, If Boyd is such a tremendous operator,and you're the Casino Industry Expert, explain why Echelon was really stopped. SUB PAR steel and Concrete!! They have HUGE problems there, like how to rectify whats already been built.
>You forgot bankrupt.
Bankrupt through mismanagement.
Boyd would run things better
Nico777 - Not currently a dealer....I was many years ago. Never claimed to be an insider, just providing some perspective on the situation. Boyd's debt load is not crippling.....it's manageable. Not an insider thing.....public knowledge....you can find it in Yahoo Finance. Ever heard of it?
You still didn't tell me what you do.....:)
S711
Less competition is always bad for the customer. Hey, Micheal Gaughn where are you in all this?
boyd is a second rate operator that treats its employees and customers below average--it does not lead on anything--it only follows what everyone else is doing. Most of their properties were bought in bankruptcy for pennies on the dollar and they put minimum into them and suck every dollar out they can, while paying low wages and giving almost nothing to the customers and workers. $$ck all these greedy people--split these assets up and get some new people running all these joints and you will see some competition and innovation. Until then its just the same old families and their cronies stealing as much money as possible and giving nothing back!
Sinatra711,
Report title: Boyd Gaming 'BB-' Corporate Credit Rating Affirmed; Rating On Senior Subordinated Notes Lowered To 'B+' (Recovery: 5)
Despite debt leverage that is weak for the current rating, Boyd's adequate liquidity profile with limited intermediate term debt maturities supports the rating. We are affirming our 'BB-' corporate credit rating on Boyd, but revising our recovery rating on the company's senior subordinated debt to '5' from '3'. The negative outlook reflects our expectation that credit measures will remain weak for the rating over the next several quarters, particularly given competitive and economic pressure in the Las Vegas locals market. NEW YORK (Standard&Poor's) Aug. 19, 2009--Standard&Poor's Ratings Services said today that it affirmed its 'BB-' corporate credit rating on Las Vegas-based Boyd Gaming Corp. The rating outlook is negative.
Instead of reading YAHOO, try the S&P. Like I said, very weak company, with a negative outlook on future earnings. At a BB rating, good luck on trying to borrow 2.4B at a affordable rate.
And anyone with a ounce of intelligence, would realize, a offer of 2.4B for Station would never happen, its obvious it's worth much more.
Nico777 - Nice copy and paste of info. Just because a corp credit rating is B+ doesn't mean anything. Many casinos were built with junk bond ratings of C.....Mirage comes to mind. It takes more than just reading bond ratings to come to a conclusion.
In my opinion, this is a good buy. And if they don't get it for $2.4 billion, then I'm sure they have a max price they are willing to pay for it. But at $2.4 billion, it's a steal.....and that is what I am commenting on. Another price and I might change my mind.
S711
You guys (Nico777, Sinatra711,mrlucky, @ retiredyoungster, :
I don't usually agree with ANYTHING Sinatra711 say's, but he is right on this one. Boyd is a good company, who still understands how to operate here in the valley in the gambling business. They understand the proper treatment of their customers, and still use the value formula be it a bit watered down, but still basically in tact. The S&P ratings change every quarter, for better or worse, so I wouldn't call it the final word, however I wish some other player would take the Stations deal and keep some competition going in this city...
Oh, now antitrust laws are being reviewed for possible monoploy in the locals market. Where were the regulators when MGM and Harrahs swallowed up the Strip?
That's one for the record books....environprotector agrees with me! :)
S711
Ask the employees(and customers) of the Coast properties just how wonderful an operator Boyd is. Gaughn couldn't take it anymore and took sole possession of the South Point as a buyout.
Hey, if Boyd was so smart they'd still have the Stardust up and would still be operating the Barbary Coast instead of a dirt lot at the Echelon site.
No one has a crystal ball but Boyd was fortunate not to be over leveraged when the economy went in the dumper.
I HOPE THEY BUY STATION CASINOS, BOYD WOULD RUN IT BETTER THEN THOSE FERTITA BROTHERS, LOOK WHAT THEY DID, TOOK OUT ALL THE MONEY..BILLIONS FOR THEMSELVES, THEN WENT BK, SCREWED THE STOCK HOLDERS, THE BANKS, AND THE EMPLOYEES..NEXT THING IS UFC THEY WILL SCREW THAT UP TO0. I HOPE THEY GET DRIVEN OUT OF TOWN, GREEDY BASTARDS
He who soweth the seeds of disaster, may he inherit a whirlwind of despair. Well, we must be talking about the egos of the Fertita's (junior). Personally, I admire them, they dared to be giants. Really. Their dream was off strip casino operations could be every bit what their former taller classmates were on strip. Everything must be examined via the time frame in which it was conceived. These gentlemen had their timing Exactly Wrong...as many of us who have played any gambling game can attest. Luck and timing are the same.
Boyd does, indeed, have a bit of discipline financially...but not that much. Look at their stock's performance. They certainly were not at their watchpost when the icebergs appeared....but they know when to leave a party...which puts their management streets ahead of their Sedona sweat lodge contemporaries elsewhere.
Having seen external circumstance can destroy as certainly as fire or pestulance...WHERE WERE THE RESPONSIBLE PARTIES TO TELL MANAGEMENT'S NO! The problem lies in the very nature of corporate America. For those who survive: Grow something down low.
BOYD SHOULD BUY HARRAHS WHILE THERE OUT ON A SHOPPING SPREE, ANOTHER COMPANY THAT TREATS THEIR EMPLOYESS LIKE DIRT.
As a casino employee, its not a good deal for any employees to have so many monopolies. But on that note, I don't think that empty buildings with 1000's more out of work is a good idea either. Wish other buyers would come forward please.
poker4nat
If Boyd gets Stations what is that going to do to there stock? It is time to buy Boyd stock or wait?
vdoog :
Go put 1k on the red square single spin at your nearest roulette wheel. Your odds in the stock market are about the same these days... :)
When their is only a few hundred folks left in the Las Vegas area,,,,will u please plan on making shur all the valley lights get shut off.
melomuncho :
ENOUGH WITH THAT ONE ALREADY! I've seen it on two other discussion rooms!
If this happens they could give the Fertitta's a job in valet parking...the only one they are qualified for.
Boycott Stations!
Since the SUN left out this sentence, I'm going to add it here:
"The Sun is not a trustworthy, unbiased source of information on the Stations Bankruptcy because we -- the Greenspuns -- are in bed with the Fertittas as part-owners of Green Valley Ranch and Alliante Station. The outcome of this bankruptcy will severely affect our financial standing. We hope nobody mentions that we didn't put that in the story."
BUSTED
Pay attention, people. Boyd Group is the same company that imploded The Stardust with grand notions of creating a mini-City Center called Echelon. That location is now a rusting, unfinished steel money pit that places a multi-million dollar strain on the company's limited resources.
If you have been in a Boyd property in Las Vegas you would be scratching your head as to what they think they're doing in the gaming business. The comment about Gaughn getting fed up with the Boyd Group's mishandling of the South Coast/South Point sounds like something that Gaughan, a truly smart locals casino operator, would do.
Think what you will of the Station's ownership, what they tried to do with taking the company private was, at the time, a great plan. They got caught, like a lot of other large companies, by the economy. And there was no TARP program for bailing them out like the financial and auto industries.
What is interesting about Boyd's offer is it forces Station Casinos hand. The Fertitta's and Colony had made what turns out to be a nominal offer of cash reinvestment in the company, that now becomes rendered unimportant.
Stations will reject this offer - but the implications of the offer are what is important. Judge Zive has declared that there will be no more extensions past March, so all the cards will have to be put on the table in any reorganization plan.
At the least, the Fertitta's and Colony will have to match the 2.45 billion Boyd has offered to the bondholders if they wish to retain ownership in the company. Their initial offer was about one tenth of that.
When it all pans out, the guess is that Station work out a deal with Deutche bank to retain management control over the PropCo entities, and the OpCo casinos will go into a bankruptcy auction where Boyd, and perhaps other bidders, will fight over control.
If you want a good standing example of a Boyd Gaming property, go for a visit to The Orleans. This is essentially where the Stardust formula was transferred to after they imploded it. Yes it was a shame, and VERY bad timing on their part. The Dust was paid for and a very profitable property. Boyd's greed overcame their fiscal sensibility. But then again this story has been told over and over again here in Vegas..
Environprotector,
Kind of like Harrah's with the IP. Circa 2007, Imperial Palace was Harrah's most profitable casino. Yet, it was, and still remains, a downtrodden property that is an asthetic blemish on the companies portfolio.
Harrah's is fortunate it didn't follow through with plans to impolde the property, much like Boyd did with the Stardust. We have to remember in the free spending late 2000's, everything seemed too easy. MGM had a plan for City Center, Boyd had big visions of Echelon, a mini city center, and Harrah's was going to create a flowing, mass, beautifully appointed casino run on the east side of the strip.
Hell, even Station's had plans to build Viva, their answer to City Center, that was proposed to be even bigger and better, at the Wet and Wild spot on Trop. That's laughable now.
Boyd is a logical choice to take over Station. The other choice would be Michael Gaughan, but I am not sure a single operator has enough dough to do that on his own.
I always have liked Boyd and have always gotten more green out the new BConnected card than I ever have out of my Boarding Pass. Besides that I have also had some good plays on BYD (Boyd's stock).
Here is the REAL test of any locals property:
What do they do for the local patrons (who lose all their money in their gamblin' joints) ?
Ultimately that's what it boils down to. Locals don't generally have wads of cash stuffed in their pockets, they are 25 cent-ers at best.
The Stardust, when up, as a LV Blvd property marketed primarily to out of town non-locals. Aside from the now imploded tower, around back next to the pathetic pool was that creaky ancient 1930's throwback hotel/motel they kept open for years on end.
Reminded me of a combination of old south cheap and 'Vegas mobster dirty.
The coffee shop food there was marginal at best and had super slow service, and the buffet was one step above a cafeteria.
And Sams Town and Gold Coast's claim to fame are their very large bowling alleys.
Stations, on the other hand, operates very upscale steak houses at Sunset, Green Valley Ranch (GVR), and Red Rock. The one at Palace ain't bad either. And excellent, very locally speaking, buffets at Sunset and GVR, along with cajun Oyster Bars in a few locations as well.
And I will tell you that I have spoken with people I know and they tell me that the Stations employees are usually some of the friendliest you will meet. Sure, their jobs are to make you happy so will lose as much as possible. But wise locals know this, anyway.
Entertainment-wise, Stations is far above it's local competition. Even for a locals joint, major names have performed on their properties. Palace even had a comedy club.
Movies? 3D? Mini Imax? Think Stations.
The pools at GVR and Red Rock are just as impressive.
Do I like or support Stations in all things. Nope. Not a chance.
Do I think gamblin' joints have a civic responsiblity to help their patrons in general. Yep. You 'betcha.
Do I think Stations gets a leg up on the competition, just by being what it is. Maybe. It looks it.
Local competition is what it is all about. And local civic responsiblity is a major part of that. If Stations loses this one, then the chips will fall where they may. If they win, it's still going to be a very competitive market for the time being.
What should be asked is:
Will this be good for us...?
all I can say about boyd gaming is this one word
"STARDUST"
What a mistake he made with it... now all he has is a emply lot - it was a super place - even the rooms were still nice - the suites were not real big but in a1 shape. He must kick himself everyday when he drives by that empty lot. My casino host told him not to take it down - that he owned it outright and no mortgage on it and now look what he did. I am afraid that if he gets any of the stations - he might just close some and do the same.. I would watch out for him!!!!
boomeranddalejr :
I can also add to your comment that over the years and right on down to the end of the Stardust Saga, the staff, patrons, locals, EVERYONE begged the Boyds NOT to implode the Stardust. It was a fantastic property, old school yes, but nice rooms(I especially liked to get the hot tub rooms, as well as the upper floor suites) a perfectly layed out casino, and simply the BEST sports book in town! Location was tops, and it complimented the next door Frontier Hotel to the south, Desert Inn, and Riviera, Circus Circus, and hell even the tiny Algiers and Slots Of Fun casinos. The pool was a bit small compared to the beautiful big dipper pool they used to have back in the fifties and sixties, and the next door Royal Nevada property which was swallowed up by the dust only months after the place opened, was a nice relaxed feel in it's courtyard and pool area as well. I also enjoyed staying in the Stardust East Tower rooms with the outdoor balconies, (some of the last ones offered in town) We all miss the Stardust, but they tore it down, and we all smart a bit when driving past that dusty vacant graveyard these days...
Boyd gaming has a lot of equity over the years. They are in line to buy the Stations. Everyone is hurting these days, life goes on.
Gee, you don't see the Maloof's going over their head trying to expand.
Boyd Properties give you a little more of a bang for your buck versus the tightwadd Station Properties.
environprotector,
Don't forget the Silver Slipper, El Morocco, and the Ho !
AKsilvereagle :
Very true! also the La Conche !!!
Why doesn't Boyd start construction on Echelon on a smaller scale to stimulate construction jobs
By the time they finish the economy will have turned around and the construction jobs would help now that City Center has wrapped up for the most part.
Not that I hate the Fertita's or anything, but what goes around, comes around. I was involved in a pending business deal with the Fertita family back in 1997 at the Palace Station. It's much to long of a story to get involved in telling about it in this format. Just as the deal was to go forward, they backed out of it. Can't really blame them for it though, because old man Fertita was the patient of my partner who was Fertitas's doctor. My partner was sent packing when I caught him trying to slip a very important option into the corporate papers that would have ended up screwing me down the road! Old man Fertita just went along with his doctor's wishes and the deal never went through. Oh well, the Fertita's were not very bright back then and it seems that the trend continued until they have ruined everything! Makes me feel very good though to see them in the position that they are in as compared to my business, which has tripled over the last 3 years.
For those that are more than happy to express their glee for the owners of Stations to take a nose dive, please think of their employees. Any major gaming company going under is not good for anyone in LV, when thousands of people depend on the jobs they provide.
Everybody has their personal opinion about Boyd and about Stations. One thing is for certain, Boyd isn't the greatest operator or the worst, same for Stations. Boyd is trying to buy low and Stations is trying to hang on to what they have.
Boyd has a tendency to allow their properties to "run down" before putting any major money back into them and Stations has a tendency to go over the top with some of their properties.
I'm not an insider and I don't know an insider, just know some people at both places. One thing I can tell you.....A lot of the people who work at Green Valley and Red Rock are concerned what would become of those properties if Boyd acquired them. Also, Boyd isn't stupid and knows this is a great chance to try and get a hold of "key" locals properties that generate more to the bottom line than their current properties when the economy is somewhat stable.
Boyd was lucky enough to not have taken their company private just before the economy took a dump, Stations was not so fortunate. Call it greed, call it bad luck, it is what it is. For those people that work at Stations currently, the most important thing is to find a resolution that allows them to stay gainfully employed.
I don't think most of you realize that the Fertitta's aren't getting as financially hurt as you think. They made a crapload of money when they took the company private and sold most of their equity to the current owners. They cashed out huge.
Notice they didn't come to the company's rescue like Adelson did with LV Sands......they know better than that. It would be a waste of money.
Now, we'll see how this all shakes out. It will be interesting.
S711
Less competition is always bad for the customer. Hey, Micheal Gaughn where are you in all this?
He's trying to bail out Black and the Mesquite s*@t holes! They couldn't make money in good times.
rcnrl, You say Boyd id cheap becaust they give only some family health care and you have to buy the rest. Every place I've worked at over the past 20 years only paid my health insurance, I had to pay 100% of the cost of family insurance.
S711, So they think you are or are not an insider. You well know, if you work in the industry as you do, if you pay attention, you will know a lot about the business. I get it, sorry the rest don't. I don't always agree with you, but do agree most of the time. I've been on the fringe of the industry as a stockholder and working for various developers in L.V. (Mostly residential and smaller commercial like Riteaid or Taco Bell) but followed gaming as an investor over the years. It is amazing what you can learn just by paying attention. That includes reading these articles and the opinions of all of us so-called self appointed experts!
I guess I am looking at it from a more basic angle. Did Station Casinos bring this on themselves? Sure. In my opinion they have done very little to react to the stagnant economy. They did the free buffet coupon in the paper, so we went. Did not feel like standing in line for over an hour to save $15. So we went to Pasta Palace instead. What happened to the specials there? We spend $100 on dinner (after expecting to eat a 2 for 1 buffet). Then went to the showroom and bought a round of drinks. $9 for a small, watered-down margarita. We thought, he lets join their rewards club so we can get coupons in the mail. That was 3 months ago and not one coupon has graced our mailbox. Yet I have never set foot in the Cannery and get coupons all of the time. It is all in the promotions and marketing folks.
Yep, S711, you said it right about the Fertitta's making a crapload on privatizing. So the family gets the money, and the creditors get bupkis. At the end of this, I bet that the family will be sitting on a load of real estate that will help Larry III (pronounced ay!ay!ay!) be enabled to capitalize his fight business for a long time.
DesertFlame, $100 for dinner at a pasta place? The last time we had a $100 dinner for 2 (Actually 125+tip) was at Ruth Chris near UNLV and we each had a great steak dinner. I like pasta, but not at a high end price. The buffet at Palace Station was really nice in the 1990's. Still O.K. but not as good. They used to have a decent steak dinner for under 10 bucks at the railroad theme restaurant that was between the gift shop and the table games. I think it's changed since then too. Seems like most of the dining choices offered by the casinos now are either at the extreme high end or low end. MAybe Boyd will bring back some of the magic.
bakersfield;
how is it Boyds problem you pay some of your own insurance? You are lucky to get most for free. If your wife does not like the company then she should get another job. Is there a gun to her head to stay? Tell the wife to get another job elsewhere.
Not sure why it's Kelley, Duckenson, and Shutte's fault Station laid off employees. Regardless of the over leveraging the company did which led to this bankruptcy, the layoffs would have been inevitable even if the company remained in a sounder financial state.
The recession caused business level drops in every casino across Las Vegas. Less patronage equates to a decreased neccessity in staffing. These casinos, as well as every for profit business, are not public service entities. You can't begrudge any company for doing what ever is neccessary to generate profit. Sadly, this sometimes involves reducing staffing and laying off employees.
It's a Pollyanna stance to think any company would continue to overstaff month after month when revenues are down. They owe it to their bondholders and shareholders to maximize profit.
Lots of interesting comments on this. I have 2 things to add.
1. Didn't Boyd make most of it money in recent years from running the Borgota in Atlantic City? The Borgota is by far the nicest property they run.
2. As for keeping the Station Employees ... Yes I agree they're many many wonderful people working for Stations and they should keep their jobs. However, whoever runs security @ The Red Rock should be the first to go being I was robbed of $700 cash on Christmas Eve in the middle of their casino and not one camera or guard caught a thing. Their response to the event reminded me of President Bush on 9/11.
Now I may not be a financial authority on gaming companies but I am in the business. I host players to over 70 casino properties from LV to the The Bahamas and I do know the most important thing to any casino is that the players feel safe. Perhaps Boyd Gaming can make some improvements in Security because at the moment Walmart has better surveillance.