When it opened in spring 2012, the Revel Casino Hotel in Atlantic City, N.J., was poised to be the flagship of the city's new image: swank, hip and decidedly luxe. Then came fall, and Hurricane Sandy, and the oceanfront resort never fully recovered.
In late June, Revel filed for bankruptcy, and the casino hotel will close for good if a buyer does not come forward soon. Proceedings that were slated to take place this week have been postponed until Aug. 14 to allow more time to evaluate bids on the property.
Philly.com reported that Revel has already notified its 3,140 employees that they may lose their jobs as soon as Aug. 18 if the casino is unable to find a buyer. The postponement notice was filed with the U.S. Bankruptcy Court in Camden, N.J., and did not identify bidders or indicate how many qualified bids Revel had received. There is also no initial, or stalking horse, bidder for the auction, though Atlantic City mayor Don Guardian said in July that six potential buyers are interested in the casino.
According to Reuters, the resort cost $2.4 billion to build. However, new gaming options in Pennsylvania and Delaware have hurt Atlantic City's gaming scene, with Revel reported a loss of $2 million per week, even during the summer season. Buyers interested in Revel were required to provide a cash deposit of 10 percent, proof of finances to complete the deal and evidence they were able to obtain the necessary licenses to operate the casino. Bids on portions of business are also being considered.