It’s been six months since Revel Hotel-Casino exited bankruptcy court and even with all that time given to get its feet back on stable ground, the company appears to be no close to getting any stability anytime soon.
Recently, the beleaguered Atlantic City hotel and casino announced that it was pursuing “strategic alternatives” in its casino model, a phrase that in the gambling industry usually means a dramatic shift in its business approach. Judging from its short but tenuous history, we won’t be surprised if Revel finds itself being marked for sale or worse, it’s ending up in bankruptcy court again.
“Revel has not made any decision to pursue any specific strategic transaction or alternative, and there can be no assurance that the exploration of strategic alternatives will result in the consummation of any transaction,” the company said in a statement issued late last week.
Like what the statement said, the company didn’t specify on what it meant by “strategic alternatives”, but anytime Revel throws out words like this, people start getting squeamish, or at least are on alert that the company is once again in a state of flux, a far cry from the grandiose promises that Revel was supposed to save Atlantic City.
Unfortunately, the casino has turned out to be more of an anchor than it has been a ray of hope and this latest proclamation that the company is looking at “strategic alternatives” lends to the belief that Revel’s struggles are continuing or its improvement is not going at the rate its new owner group, led by Chatham Asset management, has expected.
The company is withholding further comment until its board makes any sort of recommendations on the matter. We know what Revel’s been through since it opened in April 2012. It’s struggled mightily to make a mark on the struggling Atlantic City casino market. It’s already been to bankruptcy court and while it has received numerous aids and additional financing, the company is still very much in a precarious position.
Maybe these “strategic alternatives” are Revel’s way of preparing us for another round of bankruptcy or filings. That, or it’s going to change its business approach one more time. Whatever the case may be, one thing we know about this place is that it can’t escape the news – for all the wrong reasons.
