Hooters Hotel and Casino May File Chap. 11

The owner of the Hooters Hotel and Casino in Las Vegas reported a $5.37 million loss in its third quarter and could file Chapter 11 bankruptcy, according to a filing with the U.S. Securities and Exchange Commission. The 696-room hotel’s owner, 155 East Tropicana LLC, said the economy, decreased flights to Las Vegas, declining stock values and lack of business travel contributed to its losses. It also reported that its average rate per room dropped from $58 last year to $47 this year.

A quick look at 155 East Tropicana’s past, and I noticed that on March 31 the company decided not to pay interest on a loan and could be placed in default. The note to investors also said the company had $8 million in cash for operations and reserves. I suppose with the most recent loss of $5.37 million and dodging defaulted loans is enough to push a company into seriously considering bankruptcy.

Let’s face it, the Hooters Hotel is off the Strip and its biggest claim to fame is young waitresses in tight tank tops and shorts. In Las Vegas, where topless waitresses and strip clubs abound, it may not be enough.