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B.B. King’s Blues Club at Mirage files for bankruptcy

Image

Erik Kabik/Retna/www.erikkabikphoto.com

B.B. King performs at B.B. King’s Blues Club at The Mirage on Aug. 17, 2010.

Updated Friday, Feb. 18, 2011 | 11:31 a.m.

Click to enlarge photo

B.B. King's Blues Club in The Mirage on March 13, 2010.

Map of The Mirage Hotel and Casino

The Mirage Hotel and Casino

3400 Las Vegas Blvd. South, Las Vegas

Add B.B. King's Blues Club to the list of bankrupt Las Vegas restaurants and nightclubs.

The owner of the restaurant and live music club at the Mirage hotel-casino filed for Chapter 11 reorganization in Memphis on Wednesday in a bid to restructure $3.764 million in debt and other liabilities.

A message for comment on the bankruptcy was left with the owner, Beale Street Blues Company Las Vegas LLC.

The Las Vegas club and restaurant is part of a Memphis-based group of B.B. King's clubs named for the music legend. The other B.B. King's -- which are not part of the bankruptcy -- are in Memphis, Nashville, Orlando and West Palm Beach, Fla.

The initial bankruptcy filing didn't specify why the Las Vegas club filed for bankruptcy, but noted its assets of $2.57 million are less than its liabilities.

The chief liability of $2.5 million is owed to parent company Beale Street Blues Co., though it's unclear from the filing if this is for a loan or for an investment.

Other creditors include the landlord: MGM Resorts International's Mirage hotel-casino. The Mirage's claim of $585,000 is listed as "contingent/disputed," indicating there may be disputes between the club and the hotel-casino.

MGM Resorts International said in a statement: “This is a matter being discussed between our legal counsel and theirs and therefore it would be inappropriate for us to comment publicly.” B.B. King's lease at the Mirage runs through November 2014, the bankruptcy filing says.

Creditors include contractors and food and beverage suppliers owed various amounts, the state of Nevada owed some $80,000 in sales and entertainment taxes, the Culinary Union welfare fund owed $34,000, public relations agency PR Plus owed $22,000 and First Alliance Bank in Memphis owed about $233,000.

Creditors also include businesses that provide advertising services. Three of those are sister companies of the Las Vegas Sun: Las Vegas Weekly is owed $6,130, Vegas Magazine Partners is owed $4,130 and VEGAS.com is owed $500.

The Las Vegas club and restaurant said its assets include some $1.5 million in leasehold improvements.

The Las Vegas club, which opened in 2009, generated sales of $8.636 million in 2010 and $1.178 million so far this year, the filing said.

The filing is the latest in a series of setbacks for Las Vegas restaurants and clubs during the recession.

Rumjungle at Mandalay Bay, Prive at Planet Hollywood and Hawaiian Tropic Zone and Trader Vic's at the Miracle Mile Shops/Planet Hollywood have all closed; while Beso restaurant/Eve nightclub at CityCenter and Krave at the Miracle Mile Shops/Planet Hollywood remain open during their bankruptcies.

Also, in 2009 Wolfgang Puck's Chinois restaurant at the Forum Shops at Caesars closed, forcing the closure of the Poetry nightclub upstairs from Chinois.

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  1. B.B. King...
    "Recessionary Blues", the new album!

  2. I would not come to the Vegas area if I was a person of color. Metro, the courts, the heavy handed raids on pot people, shootings...etc. Death of the French Tourist

    People should understand that prostitution and drugs are legal or decriminalized in much of the developed world. The Nascar demographic, and fanny pack retirees are tapped out, the rich yuppies can go elsewhere in the world to party. We are washed up.

  3. Sad to hear about the bankruptcy. When we were in the Mirage on Monday night, it sounded like their music was quite alive.

    It looks to me, in terms of what is in the story, that the principal reason for the filing of the bankruptcy was the unpaid rent. Under Bankruptcy Code amendments enacted to protect shopping mall landlords, but coincidentally helping casinos which are landlords, unless the bankrupt tenant pays the back rent quickly, assumes the lease, and continues to pay the scheduled rent, the pro-commercial landlord amendments push the bankrupt tenant out the door relatively quickly. I'm talking a few months, not years.

    The Chapter 11 debtor's debts to parent companies, while listed as described above, are irrelevant because generally they are paid last in a Chapter 11.

  4. mred,

    I was wondering why you live in Las Vegas or do you?

    You spout a lot of hatred for this city and often have your facts wrong.

    If you really hate Vegas the way you post why are you here?

    Vegas is far from done and will be prospering long after you are gone.

  5. Y'know, there used to be small jazz lounges all over Vegas. You could buy a drink at a reasonable price, listen to some good music and be on your way. Back east, well, in the southeast we had juke joints with great blues, two bit beers and pig's feet (okay, never tried one).

    It's a shame King's has closed. The blues is an acquired taste. But I'm a fan...and a fan of King, who worked his way up in an admirable, to say nothing of very tough fashion.

    Vegas has tried just about everything, but going back to what it was...I know that'd be difficult to do considering all the dough these resorts have spent and their level of debt. But I miss it anyway.

    I want us to pull through this and I assume everyone who posts here wants the same.

  6. My wife and I had lunch at B.B.King's in August.
    The recorded music was so loud, we had to stuff
    napkin paper in our ears to stop the pain. The food was okay, nothing to rave about. We laughed as we left. Next time, we'd be sure to bring earplugs. A diner is somewhere you want to be comfortable, not blasted out of your seats with monster sound. We complained to the waitress, but she apparently couldn't do anything about it.

  7. vegaslee, go easy on mred, he's still upset about the other major article in the Sun today. He's probably never been to the club in this article.
    We ate there in late 2009 (last visit to Las Vegas) and loved it. The live blues band we saw was excellent, the food was good and affordable, the service was first rate. I hope the club survives. We are planning a trip in May and hope to spend some time (and money) there. B.B. Kings is recommended by me for a fine dining and entertainment experience.

  8. Here's another case of "fame" taking the place of knowledge. Crappy food & annoying noise don't make for a conducive atmosphere in a restaurant. But I question how one "loses" money on a take of over 8 million in receipts in a year? Who was BB paying to watch labor & food costs? Must have been a Dumbocrat! Oh, well, BB can have a nice conversation with Eva as they wait in the bankruptcy line.