Since the 2008 crisis, casinos in the State of New Jersey have struggled to recover, and this is also the case for Atlantic City. A situation which concerns especially the firm Hard Rock International which plans to build its casino in the city. The latter has already invested nearly $ 500 million for the work.
Big disillusionment
Hard Rock International, known in the entertainment industry, hoped to set itself apart by building its own gaming establishment in the capital of Atlantic City. The city has suffered many financial problems over the years and time has apparently helped matters. As a result, several casinos were forced to close their doors. With less competition, the Hard Rock company decided to take advantage of the windfall to find a new place in the market. As a result, it finalizes the takeover of the former Trump Taj Mahal, already in compulsory liquidation, to completely renovate it. The cost of the investment? About $ 500 million has been put on the table.
Hard Rock CEO Jim Allen has said he expects promising results from Atlantic City. He did not hide his disappointment, saying it is a shame that no positive change is on the horizon. The manager believes that so much effort deserves good feedback and not such disillusionment. Indeed, the installation of the casino brought undeniable advantages, in particular the creation of 3,000 jobs. In addition, Hard Rock also won his case in court over the failure to remit the $ 4.8 million in unpaid taxes. It goes without saying that luck was there. However, luck was not always there. Despite the absence of direct competitors, the casino hardly manages to accumulate sufficient profitability given the sum invested in this business. Note that the city suffered a drop in income between 2007 and 2015. Then, the situation improved markedly with the increase in income. However, this is in no way reflected on the Hard Rock accounts. So, a question arises, does this regression come from a management problem on the part of the firm or from the policy of the city in question? Still, the group complex reveals unsatisfactory figures. Does this regression come from a management problem on the part of the firm or from the policy of the city in question? Still, the group complex reveals unsatisfactory figures. Does this regression come from a management problem on the part of the firm or from the policy of the city in question? Still, the group complex reveals unsatisfactory figures.
