Wednesday, May 20, 2009 | 1:14 p.m.
- Black Gaming moves closer to bankruptcy (2-20-09)
Beyond the Sun
Black Gaming LLC today announced additional layoffs as the economic outlook continues to decline for its Mesquite hotel-casino operations.
The Las Vegas-based company said 147 of the company's 1,700-plus employees are affected by additional reductions in services at its Oasis Resort Casino Golf and Spa, where operations were already significantly reduced in December.
Today's announcement said the hotel, RV park and convention facilities at the Oasis will be used on an as-needed, overflow basis. The Denny’s restaurant, go-cart and miniature golf facilities will be closed. The Oasis golf course, gun club and time share facilities will remain open.
Majority owner Robert R. "Randy" Black Sr. said in a statement, "Operations at our CasaBlanca Resort and Casino and our Virgin River Hotel and Casino will continue as normal."
"This is an action that was taken only after significant consideration and implementation of other steps to increase revenues and reduce operating costs. While unprecedented for our company, it is an action that is essential to preserve the employment for the majority of our workforce."
Black Gaming last week reported a quarterly loss of $5.16 million, a deterioration from the 2008 first quarter when it lost $3.98 million.
Net revenue fell from $38.5 million to $27.9 million and the company said it may have to file for bankruptcy if it can't come to an agreement with lenders to extend a forbearance on its defaulting on debt; or execute a restructuring or other transaction to improve its liquidity and capital structure.
Black today said it expects to record approximately $500,000 to $600,000 in net charges related to the reduction in operations at the Oasis, mainly for employee severance costs.
"The decision to further reduce operations at the Oasis is due to the weakening economy and anticipated future decline in demand for the company’s casino services," Black said in a regulatory filing.
In December, about 500 workers were affected by the layoffs when casino and restaurant operations at the Oasis were dramatically reduced.