Business

Privé, Living Room close at Planet Hollywood

  • JASON BEAN/LAS VEGAS REVIEW-JOURNAL file photo

    A crowd packs the entrance at the Aug. 21 reopening of the Privé nightclub inside Planet Hollywood Resort. Privé and its adjacent Living Room, which had been operating under 30-day temporary licenses from Clark County, quietly ceased operations Monday night. » Buy this photo

By HOWARD STUTZ
LAS VEGAS REVIEW-JOURNAL
Posted: Apr. 16, 2010 | 2:28 p.m.

The troubled and bankrupt Privé Nightclub and its adjacent Living Room ultralounge inside Planet Hollywood Resort have closed, most likely for good, sources said Friday.

The nightclubs, which had been operating under 30-day temporary licenses from Clark County, quietly ceased operations Monday night.

Last month, Harrah's Entertainment, which assumed ownership of Planet Hollywood Resort in February, told the clubs' Miami-based owners to either pay past-due rent and expenses or leave the Strip hotel-casino.

The owners, Opium Group, ran afoul of state gaming regulators and Clark County authorities last year over the operation of the nightclubs. The company filed Chapter 11 bankruptcy protection for the nightclubs in November in Miami.

An attorney for the nightclubs did not return phone calls Friday. Clark County spokesman Dan Kulin said county authorities had been informed the clubs would be closing.

Harrah's spokeswoman Jacqueline Peterson confirmed the clubs had closed but said the casino operator had not determined any use for the nightclubs' space inside Planet Hollywood Resort.

In March, Harrah's attorneys said in a motion filed with the bankruptcy court that the Privé operators were past due on rent since the beginning of the year and were delinquent on paying their share of a $500,000 fine assessed by the Nevada Gaming Commission last year on Planet Hollywood Resort's previous owner.

Planet Hollywood Resort's former owners settled a multicount complaint with gaming regulators for not properly policing actions by Privé's operators. The complaint included allowing underage and excessive drinking at the clubs and dumping inebriated patrons in the Planet Hollywood casino.

The Privé owners agreed to pay $375,000 of Planet Hollywood's fine through an initial payment of $125,000 and five monthly payments of $50,000. According to the court filing, only one $50,000 payment has been made.

Harrah's had asked the court for approval to evict Privé, but nightclub operators sought an extension to decide whether they want to retain their lease at the casino.

Harrah's took over Planet Hollywood Resort after the previous ownership defaulted on its loans. Gaming regulators let Harrah's pay $70 million to acquire $306 million of the resort's debt, which was converted into equity. Harrah's also took on the property's remaining $554 million mortgage.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

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  1. TimeRanger Apr. 17, 2010 | 9:08 p.m. Report Abuse

    The Opium Group should have been able to pay those fines from one Saturday night's receipts. Hey FEDS, Follow The Money!

  2. Jack.Webb Apr. 17, 2010 | 8:36 p.m. Report Abuse

    Karma.

  3. nathan.nichols Apr. 17, 2010 | 12:57 p.m. Report Abuse

    After all the disgusting crap that went on in that club, all I can say is GOOD RIDDANCE! These types of clubs were the beginning to the end of Las Vegas anyway. Full of underage girls dressed like prostitutes, drunken rude frat boys, and middle aged business men looking for drunk or drugged up younger woman to take advantage of. I've seen first hand what goes on in the these clubs, and its disgusting!
    This won't be the first, or the last to close up. {next is Blush-TAO-Rain-LAX take your pick} The casinos have had so many complaints, now they have been forced to do something about it. We stopped going to these big casinos because of the customers that hang around these types of clubs. You can't gamble in peace because they are typically either yelling profanity, fighting, or behaving in a totally inappropriate manner in public. Then when the club closes and they're moved out to the casino floor for all of us gamblers to enjoy. Security does NOTHING! Just sit near the aisle in Harrahs some night, over by the Keno area and watch what happens. Its disgusting, disrespectful, and intolerable.
    Good Luck Prive on your quest to infest some other town. I think South Beach may be a good fit!

  4. outsider Apr. 17, 2010 | 10:42 a.m. Report Abuse

    HARRAHS is a CANCER growing on the Strip. EVERY property they aquire, they infect, will be destroyed by it's GREED and CARELESSNESS.

    ANYONE who ever worked for them, past and present, already knows this.

    ALL of their actions prove one thing. They don't care about the SAFETY of their guests or employees.

    Gary Loveman is nothing but a snake oil S#!T Salesman, destroying Las Vegas ONE PROPERTY at a time. He's turned Las Vegas into "Jonestown." Jan Jonestown.

    Bye Bye Las Mexico. It was nice knowin ya!

    P.S. Hey Norma, don't drink the Kool-Aid... it'll kill ya.

  5. outsider Apr. 17, 2010 | 10:16 a.m. Report Abuse

    Hey Norma,

    Just for your info:

    PACM means "presumed asbestos containing material".

    Presumed Asbestos Containing Material means thermal system insulation and surfacing material found in buildings constructed no later than 1980. The designation of a material as "PACM" may be rebutted pursuant to paragraph (k)(5) of this section.

    Harrah's was fined by OSHA for exposing their employees and guests to CANCER CAUSING ASBESTOS. The Gaming Control Board issued NO FINES for HARRAHS knowingly, WILLINGLY, doing that.

    Did you know that the Gaming Control Board fined Planet Hollywood $500 GRAND because stripper girls were whipping out their b00bers? Last time I checked, b00bers don't cause CANCER.

    What's more offensive to you?

    Gaming Control is suppose to preserve the INTEGRITY of the IMAGE of Las Vegas.

    ANYTHING detrimental to the State is supposed to be reviewed and resolved. Heavy fines usually follow.

    Does it bother you that HARRAHS has the Gaming Control Board in their pocket?

    Does it bother you that HARRAHS has the DA's Office in it's pocket?

    Absolute Corruption has to be dealt with, whether NORMA wants to know about it or not. Time for the Department of Justice to swoop in and clean house AGAIN. Where's Galardi when you need him?

  6. Charles.Gillenwater Apr. 17, 2010 | 9:20 a.m. Report Abuse

    Hi Norma

    You seem nice

    Maybe you can help me

    29CFR1926.1101(n)(7)(ii) is a Federal law that Harrah's has to comply with , right ?

    ALL current or former employyees can request data to rebut PACM ,right ?

    What seems to be the problem ?

    have a nice day , Norma

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