"The company cannot be assured that it will be successful in completing a refinancing or restructuring. If the company is unable to do so, it may determine to seek protection under Chapter 11 of the US Bankruptcy Code," the company said, as it has in each of its recent reports.

Located one-half block from the intersection of Tropicana Avenue and the Las Vegas Strip, Hooters Hotel-Casino was previously the Hotel San Remo. 155 East Tropicana LLC agreed to acquire Hotel San Remo in 2004 for approximately $72.5 million. It then spent approximately $63 million renovating, outfitting and re-opening the property in February 2006 as Hooters. It has had a tough time competing in the market ever since.

In the quarter just passed, the property produced a net loss of $5.38 million on revenue of $10.73 million. In the same year-earlier period, the company produces a loss of $5.26 million on revenue of $14.21 million. The $3.48-million drop in revenue offset a $3.55 million drop in operating expenses. In addition to a general decline in tourism and spending, the drop in revenue was attributed to road work in front of the property that reduced walk-in traffic.