ACH, the former Atlantic City Hilton, laid off 150 employees today, one day after its rescue plan was approved by the New Jersey Casino Control Commission.
ACH casino chief operating officer Michael Frawley told the Associated Press the cuts were made across all departments, including management and rank-and-file workers. ACH had nearly 2,000 employees before the layoffs.
"It's not a decision we ever make lightly," he said. "We've been looking at this for a long time." He added the cuts should not impact the level of service at the casino, which he said is one of the most important factors in getting gamblers to patronize it. "Service is value," he said. "You can't take value away from customers. You get into a death spiral if you do that, and we won't."
Last week, Colony Capital, the owners of ACH avoided foreclosure on the property by allowing lenders to foreclose on two of its Tunica properties and assume ownership. The move freed up $24.3 million in cash for Colony thereby allowing ACH to pay off its $15 million mortgage debt, keep the property open with $9.3 million in cash on hand.
The company said yesterday that it will announce additional plans, including another name change, by the end of the year. The property lost the right to the Hilton name this summer when its franchising agreement expired. Subsequent attempts to sell the property were unsuccessful.
ACH lays off 150 employees
November 17, 2011