Privé owner files for bankruptcy protection in Florida

Courtesy

Prive

By Steve Green (contact)

Published Thursday, Nov. 12, 2009 | 3:54 p.m.

Updated Thursday, Nov. 12, 2009 | 5:29 p.m.

See Prive's bankruptcy filing

Prive at Planet Hollywood

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County grants temporary license to Prive (8-18-2009)
Privé close to receiving temporary liquor license (8-17-2009)
Prive withdraws appeal of liquor license denial (8-14-2009)
Third time a charm for Privé’s liquor license? (8-14-2009)
Former Prive workers blast handling of tips (8-10-2009)
Is the party over for Prive? (7-29-2009)

The owner of the Privé and Living Room nightclubs at the Planet Hollywood resort in Las Vegas filed for Chapter 11 bankruptcy protection Wednesday in Florida.

Two cases to restructure the clubs' finances were filed in Miami, by Privé Vegas LLC and PVPH LLC.

Court papers indicate the owner of the clubs intends to keep them open; and Privé promoted on Twitter and Facebook an event for Thursday night launching "La Rumba Thursdays."

The bankruptcy filings didn't disclose if they are related to investigations of illegal activity at the clubs this year by state and local regulators. The clubs were temporarily closed this summer by Clark County because of ordinance violations.

Messages for comment on the bankruptcies were left with the clubs' parent company, the Opium Group in Miami; and with Planet Hollywood.

Judge A. Jay Cristol -- the same judge presiding over the Fontainebleau Las Vegas bankruptcy case -- on Thursday approved a routine motion that the 114 Privé employees and independent contractors receive their wages and benefits.

But Cristol did not approve a request that an "insider" receive $13,000, according to hand-written notes on the order.

"The debtor’s timely payment of employee compensation and benefits, including those that accrued pre-(bankruptcy) petition, is critical to maintain their workforce and business operations to enable a seamless transition into Chapter 11," attorneys for Privé said in a court filing.

Among the largest creditors listed in the Privé filing are Planet Hollywood operator OpBiz LLC, with a disputed claim of about $690,000; ADT Construction Group Inc. of Las Vegas, with a disputed claim of $1.6 million; Sun City Electric of Las Vegas, with a disputed claim of about $844,000; Midwest Drywall of Las Vegas, with a disputed claim of about $527,000; and the Las Vegas law firm Lionel Sawyer & Collins, owed about $435,000.

In total, Privé's filing estimated it has up to 99 creditors, assets of less than $50,000 and liabilities of $1 million to $10 million.

PVPH listed just one creditor, OpBiz, with a disputed claim of $506,000.

PVPH has no employees and is an entity created to be the named tenant on the lease for the clubs, though that lease has been assigned to Privé, Privé attorneys said in court papers.

Privé managers this summer said they were working to pay back Planet Hollywood for a $500,000 fine imposed on Planet Hollywood by the state Gaming Control Board over illegal activities at the clubs including prostitution, underage drinking and drug use. Clark County investigators also reported finding lewd and topless behavior at the clubs.

Discussion: 6 comments so far…

By rejco100

11/12/09 at 4:16 p.m.

Suggest removal

I'm amazed how these palaces and owners can go belly-up one day, claiming they are ABSOLUTELY BROKE, and once the judge signs off on the bankruptcy they are rolling in the millions, turning the flashing lights on & spinning the records again, and living life like there's no tomorrow!
By CynicalObserver

11/12/09 at 5:22 p.m.

Suggest removal

Just watch. This is a maneuver to try to prevent the County from refusing to give the bankrupt companies permanent liquor licenses, and to stop the County from canceling existing licenses.
By vc

11/12/09 at 5:23 p.m.

Suggest removal

What they do is run up huge debts and pay themselves huge salaries then go BK and start the cycle all over.
By wizardofOz

11/12/09 at 7:03 p.m.

Suggest removal

I think the Judge is proceeding wisely on this filing. Paying the employees is vital. And NOT paying the "insiders" any money is an excellent decision by the Judge.

Does Prive deserve the fine. YEP.

Does Prive deserve to be under the electron microscope. YEP.

Does Prive deserve a liquor license. THAT SHOULD BE VOTED UPON BY THE PROPER ELECTED PARTIES.

AND THE OWNERS, *ALL* OF THEM, NEEDS TO SHOW UP *IF* A VOTE IS TAKEN, and,

GIVE THEIR COMPLETE LEGAL NAMES, and,

ADDRESSES,

LIKE THEY ARE SUPPOSED TO IN THE PUBLIC MEETING.

I DON'T WANT TO SEE SOME "MOBSTER" SHOWING UP AT THE COMMISSION MEETINGS WITH BODYGUARDS WHO ONLY GIVES A "NICKNAME", AND SEE COMMISSION MEMBERS NODDING LIKE BOBBLE-HEAD DOLLS WHO THEN PROCEED TO TAKE A PREORDAINED LIQUOR LICENSE VOTE TO APPROVE (maybe like before).

(This would be all on recorded T.V., ya' know...)
By AngryReader

11/13/09 at 12:04 p.m.

Suggest removal

Who would be foolish enough to extend trade credit to these chumps?
By ericinvegas

11/13/09 at 9:52 p.m.

Suggest removal

Hope the county dimwits are happy.Another business that generates alot of income for servers and brings in important tax revenue having to file bankruptcy.Really, who in thier right mind would want to set up any kind of high dollar entertainment business here? When you try to satisfy your customers, you are treated with a fine and punishment from multiple panels of losers.Elected and not that have never earned a honest dime in thier lives.The new Vegas lite culture is the very reason our local economy is in the dumps.Hopefully our elected officials will see the light and keep Metro, licensing and the rest far and away from these contributing businesses.

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