On November 6, 2013, RIH Acquisitions NJ LLC, owners and operators of the Atlantic Club Casino Hotel, filed for Chapter 11 Bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey. The Atlantic Club Casino Hotel has 801 rooms, seven restaurants, an event space able to accommodate 1,600 people and 75,000 square feet of casino gaming space.
The Debtors attribute their financial difficulties to a weak Atlantic City market and competition from casinos in surrounding areas such as Pennsylvania, New York and Delaware. The Atlantic Club Casino Hotel is not the first Atlantic City casino to file for bankruptcy protection. Over the past six years half of the city’s twelve casinos have filed for Chapter 11 protection.
RIH Acquisitions estimates their liabilities to be between $10 million and $50 million. The Atlantic Club Casino Hotel is intended to remain operational throughout the bankruptcy process, but it is being reported that RIH Acquisitions will be seeking bids for the casino-hotel from potential buyers as soon as November 18th.