AC Casino Vendors Left Holding the Bag
Three Atlantic City casino hotels filed for bankruptcy last November, and vendors with supply relationships now face losses, according to local media reports. Atlantic City Linen Supply LLC and its sister company, ACLS Pleasantville LLC, are among the dozens of area companies that depended on the casinos for monthly revenue.
The closing of the Atlantic Club, Revel and Trump Plaza, are just an example of Atlantic City’s shrinking casino industry, which is expected to have a painful, across-the-board impact on that region, according to the report. Vendor losses from the bankruptcies and closures, in fact, constitute a second wave of economic impact beyond the direct loss of 7,000 jobs at the four closed casinos. (Showboat is the fourth casino to close, but it was not in bankruptcy.)
Left holding an expensive bag after bankruptcy proceedings, the commercial launderer and its sister company are owed more than $300,000. While it has fared better in the Revel filing, in the Atlantic Club bankruptcy, ACLS Pleasantville was owed $94,351, according to the claims register. In the Trump bankruptcy, records show that Atlantic City Linen Supply is owed $250,819.
In the Revel bankruptcy, the laundry firms are owed just $16,756. The day Revel filed for bankruptcy protection, the company wired payments totaling $1.9 million to 14 vendors, a court filing shows. Although most of the money ($1.5 million) was sent to gaming suppliers, Atlantic City Linen and ACLS Pleasantville received, in aggregate, $129,117. That suggests they were considered essential vendors.
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