Hooters Casino in Vegas warns it may go bust

Hooters celebrated its 25th anniversary last year, but it's not clear if its Las Vegas casino will make it to 4.

Hooters Casino Hotel opened just off the Las Vegas Strip 3 1/2 years ago, hoping to add some spice to what had been the frumpy Hotel San Remo. Its ownership group includes some of the founders of Hooters restaurant chain, which was launched in Clearwater in 1983.

However, the casino hasn't been nearly the success Hooters restaurants have been. On Friday, the business entity that controls Hooters Casino Hotel, named 155 East Tropicana LLC, announced it lost $5.1 million in the three months ended June 30. That compares with a profit of $2.4 million in the same three months in 2008.

Its revenues also fell dramatically. Revenues from casino, hotel and restaurants fell to $11.7 million in the quarter ended June 30, down from $16.4 million a year earlier.

What's more, its owners issued $130 million of bonds in 2005 to open the casino hotel, and it has since defaulted on those bonds. It missed its April payment to bondholders and expects to miss its upcoming October payment, Friday's filing says.

This week, Deborah Pierce, the chief financial officer of 155 East Tropicana LLC, said the company is negotiating with its bondholders. She directed further questions to the company president, Mike Hessling, who could not be reached for comment.

According to its Friday financial report, Hooters Casino Hotel has been hit with a host of problems in the past couple years. Among other things, it blames its financial troubles on the housing bust, rising unemployment, fewer air travelers to Las Vegas and less spending by business and leisure customers.

Clark County, where Las Vegas is located, also has been doing road work along Tropicana Avenue, which has hurt the casino's foot traffic, the filing says.

For now, the fate of Hooters Casino Hotel seems to be in question.

Bankruptcy remains an option if the company can't restructure its debts or get new financing, according to the financial filing, and the company warned that its ability to continue as a "going concern" remains in doubt.