I know numerous people that work at the Beau Rivage Casino in Biloxi. It’s not hard for anyone to know at least 1 or 2 considering they have thousands of employees, but go there now and it is not hard to tell that something is going down. The best predictions are that they are preparing to sell…

Over the course of the past few weeks, the Beau Rivage has been cutting back hours everywhere they can. Try their retail stores at night and you will notice that some stores that used to be open until midnight are starting to close at 10pm. View the table games and you will see floor supervisors sitting box on a craps game.

So the big question on everyone’s mind is “why are they cutting hours?”
The Beau Rivage makes MILLIONS of dollars in gaming revenue and surely does not need the money, so why else would they be cutting back so much?

When a company is preparing to sell out, they of course attempt to make their profit margins look as large as possible. When a company shows its P&L (profit and loss) statements, they can determine the value of a company based on income versus expenses. If the Beau Rivage can reduce expenses by cutting hours, positions, etc., and possibly even squeeze a little out of food (I ate at the buffet tonight and it was not the best I have had there), they can ultimately make the profit margin look higher and thus demand a higher price on a sale. Then, the new owner can come in and say, okay, we need to increase labor and spend a little more here to make things work more efficiently.

While this article is purely speculatory, knowing a little bit about what is going on behind closed doors, could lead one to deduce that there is at least a possibility that the Beau Rivage is trying to maximize its bottom line to prepare for a sale. So the next question is, if this is the plan, who would the most likely buyer be?

What do you think?
I welcome comments…

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