Since the recession, a number of nightclubs and restaurants across the country have filed for bankruptcy in recent months, and B.B. King's Blues Club at the Mirage in Las Vegas is now among that list.
The blues legend's nightclub recently filed for a Chapter 11 bankruptcy - commonly known as a business reorganization bankruptcy - in order to restructure their debts and liabilities, which total over $3.75 million.
B.B. King's Blues Club is actually a chain of nightclubs that has other locations in Nashville, Memphis, West Palm Beach and Orlando. And, although these non-Las Vegas locations are not currently filing for business reorganization, this news does follow a trend in Florida and other vacation hotspots where local restaurants and other forms of nightlife entertainment have had to close due to decreased numbers of tourists and people just in general not spending as much money as they used to for going out.
Although the B.B. King Blues Club bankruptcy filing did not cite specific reasons for the action, it is known that the company's assets of $2.57 million are far less than its liabilities, which total to be at least $2.8 million, with $2.5 million of that being owed to Beale Street Blues Company Las Vegas LLC, the nightclub's parent company. Additional money might also be owed to MGM Resorts International's Mirage hotel-casino, which is the nightclub's landlord.
Businesses that provide advertising for the nightclub, as well as the state for entertainment and sales taxes, contractors, food and beverage suppliers, a public relations agency, the Culinary Union welfare fund and a Memphis bank, are all also listed among creditors.
The long list of creditors involved with the B.B. King Blues Club makes it easy to see why so many nightclubs and restaurants are closing or filing for Chapter 11 bankruptcy. Debts to contractors, food and beverage suppliers, publicity firms and other partner companies can total millions of dollars, resulting in business bankruptcy for many once-thriving nightlife hot spots across the country.
Source: Las Vegas Sun, "B.B. King's Blues Club at Mirage files for bankruptcy," Steve Green, 18 Feb 2011