Rants and raves about burning topics that have caught my attention midweek, be it greedy corporate shenanigans, frustration or joy in regards to the Philly sports teams, a movie, show or DVD that has fired up my imagination, an intriguing personality, or my on-going battle to lose weight in our fast food world. — Lori Hoffman, Associate Editor, Atlantic City Weekly
It became official on Monday, March 8. New ownership led by Carl Icahn took over the Tropicana Casino & Resort, signaling a new era. Multi-billionaire Icahn has been a wheeler-dealer in the Atlantic City market before. Back when the Sands Casino Hotel filed for bankruptcy in 1998, he swooped in two years later and bought controlling interest in the property, winning in bankruptcy court over Park Place Entertainment. At the time Icahn also wanted to purchase the Claridge, but eventually Park Place Entertainment won that battle. Park Place Entertainment, now known as Caesars Entertainment Inc., owns Bally’s/Claridge, Harrah’s Resort, Caesars and Showboat/House of Blues.

Carl Icahn
Icahn, who has been described as both a corporate raider and a corporate savior, sunk significant money (reported at $65 million at the time) to try and improve the bottom line for the Sands. Still, the smallest casino in town, once home to Frank Sinatra and Cher as regular entertainers, continued to lose money. Eventually Icahn sold the Sands to Pinnacle Entertainment in 2006.
The Tropicana has a lot going for it as a destination casino with the dining, shopping and nightclub complex, The Quarter, and 2,129 hotel rooms. Despite that, the previous owners mismanaged the property into the loss of its casino license and bankruptcy. In essence, Icahn and his partners have brought a property sold for 2.75 billion in 2005 for the fire sale rate of $200 million of the property’s mortgage for equity.
The Tropicana has managed to survive quite a bit of chaos the last decade and Icahn should certainly bring financial stability.
In a press release, Mark Giannantonio, president and C.E.O. of Tropicana Casino & Resort said, “It’s a whole new year, new energy, new era at the Tropicana. Now, with a great partner like Carl Icahn at our side and our staff of dedicated and hardworking employees, we can really move the Tropicana forward as the pre-eminent entertainment resort in Atlantic City. We’re thrilled about the possibilities.”
To see the Trop’s new direction, check out this Web site. Read the rest of this entry »