The Atlantic Club was Atlantic Citys' 6th casino originally built at a cost then of US$140 million.
In 2005, it was valued at $513 million as part of a $1.2 billion deal that included four casinos in New Jersey, Mississippi and Indiana when Purchased by Colony Capital LLC.
It has become the first Atlantic City casino to shut down because of the downward spiral the resort has faced since the first casinos opened in neighboring Pennsylvania in late 2006. Atlantic City’s casino revenue peaked at $5.2 billion that year. It will likely fall below $3 billion this year.
“The workers at Atlantic Club have loyally served the company for three decades,” Union President, Bob McDevitt said. “While we can’t stop the Atlantic Club from closing, we are going to do everything we can to fight for the workers to get as much as possible in this tragic situation.”
The Casino workers union has formally objected to the sale, arguing the purchaser should have to also take on the union contract, instead of selling free and clear.
A deal to sell to the PokerStars website for $15 million collapsed earlier this year over concerns about whether the website’s management could qualify for a state casino license because of unresolved legal issues involving the company’s founder.
When it filed for bankruptcy in October, Atlantic Club became the resort’s second casino, after Revel Casino-Hotel, to seek protection from creditors this year.
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