ANGELES, CA - /Reuters/ - The $1.3 billion Aladdin Hotel and
Casino, the Las Vegas Strip's newest mega-resort, has struggled
in its initial months of operation and may fail to meet upcoming
financial obligations without a debt restructuring or cash
infusion, according to a filing by the company on April 2.
filing by Aladdin Gaming Enterprises depicted a company struggling
to find a winning mix of gaming and image on the competitive
Las Vegas Strip where it competes with much larger corporations
that own multiple properties.
its opening in August 2000 the Aladdin has reduced its staff
to 3,100 workers from an initial 4,500, according to the privately
held company's quarterly filing with the Securities and Exchange
Commission. For all of 2000, the company - which sits on the
site of the old Aladdin where Elvis Presley married Priscilla
Beaulieu - reported a net loss, including opening costs, of
the potential shortfall, Aladdin said it is exploring several
alternatives, including taking on more debt or selling an
adjacent five-acre parcel of land. The company said it may
also try to reach a new agreement with its creditors.
weak is largely the result of poor design and marketing issues,
according to analysts.To
a lesser extent, the resort was also the victim of a slowing
economy, and had the misfortune of opening at the end of a
building boom that saw thousands of rooms added to the Las
Vegas Strip over the last three years.
it is not unusual for new casinos to get off to slow starts,
the Aladdin has drawn criticism from gaming analysts on issues
ranging from its poor access to the Strip to the congested
layout of its casino floor.
abound that Aladdin's partner London Club International has
been shopping its stake in Aladdin in an effort to shed what
many perceive as an albatross around the company's neck. One
frequently mentioned potential buyer is park place Entertainment
Corp., which owns about 30 percent of Aladdin's high-yield
zero bonds and also owns an operates the adjacent Paris Las
Vegas Casino Resort.