Buyer has plans for Trop workers
By DONALD WITTKOWSKI Staff Writer, (609) 272-7258
Published: Saturday, October 14, 2006
ATLANTIC CITY — Columbia Sussex Corp., a private gaming company little known in Atlantic City, will meet with employees of Tropicana Casino and Resort to discuss plans for the casino under its new ownership, including possible job cuts.
Employees received a memo Friday telling them of “very important meetings” on Monday and Tuesday that will include a question-and-answer session with Columbia executives.
In a related development, Aztar Corp. shareholders will vote Tuesday whether to approve the $2.75 billion merger that will give Columbia ownership of Tropicana and four other Aztar casinos in Nevada, Indiana and Missouri.
Columbia Sussex is a privately owned, mid-tier gaming operator that has eight riverboat and land-based casinos in Nevada, Louisiana and Mississippi. It plans to build a nationwide gambling network by adding the Aztar casinos to its portfolio. Aztar%26#39;s prized assets are the flagship Tropicana casino in Atlantic City and 34 acres of prime land along the Las Vegas Strip ready for development into a megaresort.
The Kentucky-based Columbia is virtually unknown in Atlantic City and has not yet made its plans for Tropicana public. Gaming analysts expect Columbia to refurbish Tropicana%26#39;s aging casino space and hotel rooms to complement the property%26#39;s splashy retail and entertainment complex, known as The Quarter.
Since The Quarter%26#39;s grand opening in November 2004, Tropicana has consistently been one of the leaders in revenue growth. It was sixth among Atlantic City%26#39;s 12 casinos last year with $441.9 million in gross gaming revenue.
At the meetings Monday and Tuesday, Columbia executives will give Tropicana%26#39;s 4,100-member work force an overview of the company and discuss their customer service philosophy, according to the memo.
“We hope you can attend one of these very important meetings, as they will lead us into new changes in our company,” the memo said.
The memo noted that employees may submit anonymous questions to the Human Resources Department that will be passed on to Columbia officials. Questions likely will focus on recent layoffs at the casino and reports that more are planned.
Tropicana spokeswoman Diane Spiers said the meetings will be closed to the media, but she declined further comment. Columbia spokeswoman Shannon Provost also would not comment.
Columbia outlasted Pinnacle Entertainment Inc. of Las Vegas in an intense takeover battle for Aztar that began March 13 and involved two other bidders at one point. Pinnacle initially offered $38 a share for Aztar, then duked it out with Columbia and rivals Ameristar Casinos Inc. of Las Vegas and Colony Capital LLC of Los Angeles.
Under the $2.75 billion deal, Columbia%26#39;s casino subsidiary, Columbia Entertainment, will pay $54 a share and assume $676 million in Aztar debt. Aztar%26#39;s shareholders and gaming regulators in New Jersey and other states must give their approval before the buyout is completed by year%26#39;s end.
In order to take over the Aztar casinos, Columbia will seek new gaming licenses in New Jersey and Indiana. It is selling off Aztar%26#39;s riverboat casino in Caruthersville, Mo.
The New Jersey Casino Control Commission is expected to hold a special meeting before Nov. 8 to consider Columbia%26#39;s request for a temporary gaming license to own and operate Tropicana pending a final vote on the matter.
Columbia owns and operates 82 hotels and resorts in the United States, Canada and the Caribbean, including the Marriott, Hilton, Westin, Sheraton, Renaissance and Doubletree brands. When combined with Aztar%26#39;s holdings, Columbia will have 33,000 hotel rooms and 12 casinos in Nevada, New Jersey, Louisiana, Mississippi, Illinois and Indiana.
Tropicana NewsI for one always get worried about playing in a casino after reading news like this. I always think to myself how does this affect the slot payouts etc...
Does anyone else have the same concerns ?
CHEERS !!!!!!
Tropicana NewsI never do well at the Trop anyway.
I do always see people in line at the comp/cash machine with $389.00 cashback so they must be making money. You gotta lose alot to get that much back!
Term
After you found a new home %26amp; host this , had to pop up . Hope there is no impact on your overall relationship .
Moe
Love the picture . One of our all time favorite movies .
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