Caesars is having its share of dismal news lately. In a recent newsletter that reports on Las Vegas, it was suggested that people not make cash reservations for the famous hotel or make any type of deposits in any of the casinos that are operated by Caesars Entertainment. The reason for saying this are rumors of a possible bankruptcy filing.
Bill Mandel, who is the publisher of the newsletter said: “In an abundance of caution, this newsletter advises you not to deposit any funds (deposits for hotel reservations, deposits in the cashier’s cage or not redeeming casino chips, etc.), in … Caesars hotels, until the situation at Caesars becomes clearer. The newsletter is called Openings and Closings in Las Vegas.
The newsletter, according to Mandel, has been in business for more than 16 years and has more than 64,000 subscribers. Most of whom are Las Vegas visitors as well as various gamblers.
For its part, Caesars says that it is not considering bankruptcy. Even so, some analysts have made speculation that such a course may, indeed, be in the cards for the company. According to one expert, even if the company did file for protection, it would have little or no effect on its hotel reservations or on its casino deposits. It would be a problem for shareholders, but for customers, according to this expert.
An example was cited of the 2009 Chapter 11 bankruptcy for Station Casinos. In this, the company did have to sell off some assets and it did have to reorganize finances, but its customers were not harmed. The company has emerged from bankruptcy in 2011. Many suggesting that the company came out stronger.
Caesars has also said through a spokesman that the company does not respond to these types of speculation or rumors and that this has been its policy for a long time. He also said that these rumors have been around for many months now.
Perhaps the reports by Moody’s Investors Services back in April have had a lot to do with this. They downgraded the company’s credit rating, downgraded it, in fact, to one of its lowest levels ever. Mandel says he used this information to make his decision to post the article.
It was reported by Caesars in the earnings report that came out in July, that they bought back some $275 million in debt. It also reported that it planned to beef up its many and various product offerings in Vegas and that it planned to get into the Maryland casino market. They said that they were also reducing spending in its marketing departments for those areas that are not seeing much gain.
While some may find the news about the company distressing, investors are sticking with it. Right after the Moody’s post, stocks did drop, but they have since rebounded. Only time will tell if the rumors are based on fact or on fancy. In the meantime, many loyal customers are continuing to patronage the famous landmark and its hotel.