Beau Rivage Casino Prepping to Sell?
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…
About the Author
Damion Flynn is a staff writer for MSCoast.net and majority owner in the site. Born in Biloxi, he is very familiar with the Mississippi Coast. Damion enjoys working online, helping others, and spending time with his family.
Comment by Rock on 6 September 2008:
This story has been speculated for years. It has been said that Steve Wynn has wanted this property back since selling off the Mirage properties years ago. He’s about the only buyer I could see interested. Harrah’s already has a major stake in Margaritaville in Biloxi. The Beau has already stated if they were to get hit by another Katrina, they would not be returning to the Coast, so I could see them putting themselves for sale. But, then again, everything is for sale if the price is right!
Comment by Saman on 11 January 2009:
Vegas is not doing well because of the economy. All casinos with a “vegas connection” are hurting right now. Maybe they are planning on selling… Maybe they are making cuts because the economy isn’t good.
Comment by anonymous on 16 January 2009:
It was told to me today,(by an employee)that the beau rivage was purchased by penn national gaming,the same that own Boomtown casino Bilox.
Comment by anonymous on 16 January 2009:
The employee works at the Beau Rivage and had read a memo. that supposedly confirmed this. I could not find any info. on it as a fact. It must have been a very private acquisition.
Comment by Damion on 16 January 2009:
That is pretty much the same info I received - that it was on an in-house memorandum.
See this post - Beau Rivage Sold
Comment by anonymous2 on 18 January 2009:
I heard there is a meeting with managers and higher ups the 21st with Mr. corchis.