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 The owner of B.B. King's Blues Club at the Mirage hotel-casino has filed for Chapter 11 bankruptcy in a bid to restructure $3.764 million in debt and other liabilities. The initial bankruptcy filing didn't specify why the Las Vegas club filed for bankruptcy, but it did note that its assets of $2.57 million are less than its liabilities. The chief liability of the $2.5 million is owed to parent company Beale Street Blues Co., and other creditors include MGM Resorts International's Mirage hotel-casino whose claim of $585,000 is listed as "contingent/disputed.," businesses that provide advertising services, contractors and food and beverage suppliers.
The Las Vegas night club, which opened in 2009, generated sales of $8.636 million in 2010 and $1.178 million so far this year according to the fillings. While to the average person this may sound like a lot it just wasn't enough to keep the company afloat.
The filing is just the latest in a series of setbacks for Las Vegas night clubs and restaurants. Other locations that have been forced to file bankruptcy since the recession hit include Rumjungle at Mandalay Bay, Prive at Planet Holly Wood, Trader Vic's at Planet Hollywood, Eve Nightclub at CityCenter, and Chinois restaurant at the Caesars.
The Las Vegas economy is showing signs of recovery but it's still unclear how many more locations will be forced to shut down before the economy gets back up on its feet.
As always, stay tuned to Casinofan for more news and updates.
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