Tropicana Cuts Will Include 117 Dealers

NJBIZ, Jan 26, 2009

ATLANTIC CITY- Tropicana Casino and Resort plans to lay off 1 17 dealers, freeze the pay of employees earning more than $50,000 and limit raises to 2 percent for those earning less, all in a bid to save $820,000, spokeswoman Diane Spiers-Knox said, confirming an announcement from Mark Giannontonio, president.

The casino resort also plans to ask employees to pay more for their medial coverage, and it will stop making matching contributions to the 401 (k) retirement accounts of its senior executives.

Tropicana is hurting like others in its industry from declining casino patronage, but it also lost its gaming license in December 2007, after regulators cited violations and customer complaints of unsanitary conditions under its former owner.

Now under the control of Gary Stein, a state-appointed conservator, the casino is heading for a bankruptcy sale. Cordish Co., a Baltimore real estate developer, is the lead candidate in the proceedings.

Stein recently said Cordish's previous offer - $700 million in cash and notes, or $575 million all-cash - was lowered by the company, but he didn't disclose the revised offer. - Shankar P.