The idea of a Hooters casino in Sin City might have sounded like a sure thing, but as it turns out, not even a casino full of scantily-clad female workers is a guaranteed moneymaker in Vegas. According to a Securities and Exchange Commission filing, Hooters has received a notice of default from its lenders that says its expected cash flow won't meet the total financial obligations. And that's bad:
The company lost $14.5 million for the first nine months of this year on revenues of $35 million. Among the results, a 20% decline in food and beverage sales.
While Hooters "actively" tries to restructure its debt (estimated at $147 million), everyone is wondering how exactly this happened. Theories include a crappy off-the-strip location and the troubles connected to the recession. Perhaps it's because visitors don't want to frequent something in Vegas that they have in their hometown or maybe it was a marketing issue.
Or maybe, as seen above, it's because Owlzilla and Bobby Slayton are the main headliners.
· Hooter's Las Vegas in Default [BW]