Privé Owners File for Chapter 11 BankruptcyNovember 13, 2009 By: Emily Hanna Mayock
The year of turmoil continues for Privé Nightclub and its sister lounge The Living Room at Planet Hollywood Hotel & Casino in Las Vegas, as owners filed for Chapter 11 bankruptcy protection on Wednesday in the U.S. Bankruptcy Court in the Southern District of Florida, where the clubs’ parent company, Opium Group, is based.
The owners intend to keep the clubs operating, according to court documents, and a judge approved a motion on Thursday to allow employees to continue receiving pay and benefits, the Associated Press reports.
Two cases to restructure the clubs’ finances were filed by Privé Vegas LLC and PVPH LLC. Privé Nightclub listed assets at less than $50,000 against $1 million to $10 million in liabilities, court documents showed.
Those listed as unsecured creditors include: Miami-based Vegas Nightclub Partners (a disputed claim of $2.6 million), Las Vegas’ ADT Construction ($1.6 million), William Richardson of Las Vegas ($1.6 million), Sun City Electric of Las Vegas ($844,000) and Planet Hollywood operator OpBiz LLC ($690,000), among others.
Earlier this year, Privé and The Living Room were forced to close after “the failure to abide by the duties of a liquor licensee as set forth under Clark County Code 8.20.465.” This came hours after the state’s Gaming Control Board fined Planet Hollywood Hotel & Casino $750,000 for a list of nine complaints against one of its most high-profile tenants, Privé Nightclub. Complaints included serving minors, overserving patrons and allowing topless/lewd activity and drug use within the club. Ownership was to pay Planet Hollywood for a majority of the fine.
The clubs were granted temporary licenses to reopen, and just last month, the Clark County Department of Business Licenses granted the clubs another 90-day temporary liquor license because ownership had followed the 11 conditions set by the board and the Las Vegas Police Department, which included implementing a new management team, complying with licensing, gaming and police representatives wishing to enter the club and reporting serious incidents within 24 hours.
The Opium Group is under investigation by the LVPD, a process that takes up to 18 months to complete.