ATLANTIC CITY, NJ-The Atlantic Club Casino Hotel filed a bankruptcy petition in federal court Thursday, requesting a court-approved sale, the resort operator announced.
Last year, the online gaming commpany PokerStars moved to buy the casino in anticipation of legalization of Internet gambling in New Jersey, but that deal foundered after federal regulators cited past violations by PokerStars.
The Atlantic Club was originally opened as the Atlantic City Hilton. It has of late repositioned itself as the bargain-rate resort in a city of a dozen casinos.
"We believe in our property's positioning and the value-centric niche we committed to nearly 18 months ago,"said the resort's CEO Michael Frawley in a statement. "Our creative branding campaign and the tremendous efforts of our employees have resulted in property growth within a continually challenged market."
He said the overall market swoon in Atlantic City has just gone on too long.
The Atlantic Club did slightly better in the first three quarters, with revenues up 11%, but it is still operating in the red. Nevertheless, Frawley said there will be a "seamless transition for our employees and guests" and that business will continue as normal through the Chapter 11 proceeding.
In other disappointing nws for the gambling city this week, news emerged that the site of the former Sands Casino Hotel was sold for the cut-rate price of $29.5 million to developer Boardwalk Piers.
The deal was announced last month by seller Pinnacle Entertainment, but at the time the purchase price was not disclosed. It was reported as part of Pinnacle's third quarter results, . The sale price was less than half of what the Sands' assessed value was two years ago.
Pinnacle acquired the property in 2006 for $270 million and had plans to build a $1.5-billion resort at the site. See story in the Press of Atlantic City.
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