Showboat and Revel closed earlier this week. One of the mistakes Revel made was not owning the nightclubs under its roof. The HQ Nightclub and HQ Beach Club were extremely popular. So popular, in fact, that the owner is trying to keep the doors open even with no connecting casino open.
HQ Nightclub parent company Boardwalk LLC has petitioned the bankruptcy court to allow it to stay in business. The entertainment business has direct access from outside Revel so it does not need the casino to be open for guest access.
No ruling has been made in this case.
Boardwalk LLC invested $16 million in its nightclub and dayclub businesses. The value of the club likely deteriorates with every day it remains closed. It is also missing out on the last few weeks of summer, when Atlantic City is at its busiest in terms of visitation.
Revel is not the only casino with a tenant unhappy about its landlord closing. Trump Plaza is in the same situation.
Rainforest Cafe has a lease at Trump Plaza through 2028. It pays $450,000 a year in rent to Trump Plaza, according to a court filing. Rainforest Cafe filed suit in an attempt to compel Trump Plaza to allow the restaurant to remain open for 90 days after the casino closes while utilities are transferred. Rainforest Cafe has direct access to the Atlantic City Boardwalk and does not need the casino to remain open for access to the property.
Landry’s is the parent company of Rainforest Cafe. Landry’s also owns the Golden Nugget, a competing Atlantic City casino.