Co. That Owns Margaritaville Casino Files Bankruptcy

MVB Holdings, the company running Margaritaville Casino, filed for bankruptcy Tuesday. It’s a move that now puts a hold on any legal proceedings against the company. The company was due in Biloxi Circuit Court Wednesday morning. That hearing was expected to determine what happens to the newly vacant building, but the hearing has now been taken off the docket.

Security guards at Margaritaville turned away car after car Tuesday, many unaware the casino closed its doors for the last time Monday night.

John DeClue and his wife traveled all the way from St. Louis, Missouri to check out gaming along the Coast. Margaritaville is now one stop they’ll have to do without. DeClue says, "We were looking forward to stopping in here. We’ve been here since yesterday afternoon and now we’re headed to New Orleans, but we were hoping to go here. I guess we won’t now."

The Moores were also disappointed to hear the casino closed four days ahead of schedule. Bill Moore, a tourist, says, "They said it just closed last night. I thought it was supposed to be open until Friday, but I don’t know what happened."

Biloxi rakes in $16 million in casino revenue every year. Biloxi’s Chief Administrator, David Nichols, believes the closing of Margaritaville will not have a substantial impact. Nichols says, "I’m not so much concerned about the loss in gaming revenue because I think the other casinos will make up for the loss. I think the people who have been coming here will probably go to the other casinos."

DeClue also says, "We’re gonna’ try and find a casino down the street and see what’s going on."

Nichols says the city’s main concern is the employees who no longer have a reason to stay in the area. Nichols closes, "You know, 350 employees who spend their money here locally, buy their goods here, get sales tax, it’s a real impact with school just starting back, I’m sure many of them have kids in school."

Although Margaritaville has filed bankruptcy, employees have been told they will be paid through the 19th as promised. Before filing for bankruptcy, MVB Holdings settled its litigation with Landry’s Incorporated, the parent company of the Golden Nugget Casino.

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