Adding itself to the long line of bars, clubs and restaurants in Vegas that have filed or declared bankruptcy, hit hard during the recession, B.B. King’s Blues Club in the Mirage filed for Chapter 11 on Wednesday, bidding to restructure liabilities and debts totaling almost $4 million. B.B.King’s Blues Club is one of five locations, all owned by a Memphis-based group of clubs named after the legendary musician B.B.King. The Vegas location is the only location facing bankruptcy at the moment, the other locations are in Orlando, Nashville, West Palm Beach and Memphis.
Although the exact filing is unknown, it was noted that the company’s current assets are just over $2.5 million, the discrepancy between assets and liabilities overwhelming, with the main liability currently owed to the club’s parent company, Beale Street Blues Company. Other debts include various amounts owed to food and beverage suppliers, the State of Nevada, and advertiseing costs with various organizations. An over $500,000 amount listed by MGM Resorts International’s Mirage as “contingent/disputed”, with the club’s lease at the Mirage running through 2014.
In a statement issued by MGM Resorts earlier this week, they state: “This is a matter being discussed… it would be inappropriate for us to comment publicly.” The Vegas blues club opened in 2009 with over $8.5 million in sales generated in its first year, however with sales in 2010 totaling just over $1 million so far, the recession has made an extreme impact on the club’s ability to continue as itstarted.
B.B. King’s Blues Club is just one of many Vegas clubs and restaurants left reeling from the recession, Vegas overall taking an obvious hit. Still unclear if it will remain open at the moment,other celebrity restaurants in the area have not been so fortunate. For example, Wolfgang Puck’s Chinois is now closed. Opened in 2009 as
well, the restaurant, once located in the Forum Shops in Ceasar’s Palace, contributed to the closing of Poetry nightclub located just upstairs. Other establishments currently closed due to lack of funds include Planet Hollywood’s Prive, the Rum Jungle at Mandalay Bay, Trader Vic’s once located at the Miracle Mike Shops in Planet Hollywood and Hawaiian Tropic Zone. Two clubs, Eve Nightclub and Beso Restaurant at CityCenter and Planet Hollywood’s Miracle Mile Shops’ Krave, have remained open despite declaring bankruptcy.