Its developers gambled when they opened Revel in April 2012. Now, two and a half years later, they've lost, according to owner Revel AC Inc., which announced yesterday that the casino resort will close "no later" than Sept. 10.
The first new resort to open in Atlantic City, N.J., since 2003, when the Borgata Hotel Casino & Spa opened, Revel was created with hopes of catalyzing a revival in Atlantic City, whose tourism economy has long been struggling. Less than a year after opening, however, the property filed for Chapter 11 bankruptcy protection, claiming that the $2.4 billion resort was now worth just $450 million.
Since then, the resort has gone through a second bankruptcy and has continued to fail at generating a profit. In order to raise capital and save the property, Revel AC early this summer announced its intention to sell the resort at auction. The auction is tomorrow, however, and the company still has no buyer.
"Despite the effort to improve the financial performance of Revel, it has not proven to be enough to put the property on a stable financial footing," Revel AC said in a statement. "This situation is compounded by the considerable non-controllable expense structure that has financially burdened the property. In addition, challenges have arisen in our attempts to sell Revel as a going concern. While we continue to hope for a sale of Revel, in some form, through the pending bankruptcy process, Revel cannot avoid an orderly wind down of the business at this time."
Atlantic City started 2014 with a dozen casinos. By the end of the year, it will likely be down to just eight: Along with Revel, three other properties -- The Atlantic Club; Showboat, owned by Caesars Entertainment; and Trump Plaza, formerly owned by Donald Trump -- have closed or plan to close this year.
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