Las Vegas Sun

April 19, 2024

Fontainebleau executive leaves company

Fontainebleau Resort

The Fontainebleau, construction stopped, is seen dark along the Strip. Launch slideshow »

The Las Vegas Strip's beleaguered Fontainebleau resort, still trying to line up financing to finish construction, today announced the departure of a key executive.

"Glenn Schaeffer has left Fontainebleau Resorts as chief executive officer, president and member of its board of managers as the company continues to explore its financing alternatives," Fontainebleau said in a statement.

The company said it would have no further comment on the departure of Schaeffer.

Schaeffer was a highly regarded executive at Mandalay Resort Group -- now part of MGM Mirage -- who partnered with condominium developer Turnberry Associates in 2005 to develop the $2.9 billion Fontainebleau.

Work on the mostly-built Fontainebleau dramatically slowed last month after a group of banks declined to fund $790 million needed to complete the resort, citing an event of default that has not been made public. The resort and the banks are now engaged in a lawsuit over the funding issue.

Besides trying to gain the bank funding, the company has been looking for additional equity to finish the project.

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