X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-Citing the year-old smoking ban and general economic weakness Herbst Gaming Inc. said Thursday it has retained Goldman, Sachs & Co. as financial advisor to assist it in evaluating financial and strategic alternatives. Actions being considered may include recapitalization, refinancing, restructuring or reorganization of the company’s obligations, or a sale of some or all of its businesses.

“The Company has a long history of providing gaming services in Nevada and we believe in the strength of the Terrible’s brand; however, the recent impact from … the Nevada smoking ban, and general economic weakness has required us to explore our alternatives,” said company chairman/president/chief executive Ed Herbst. “We are confident that our retention of a financial advisor will help us capitalize on the strength of our brand and position the company to maximize long-term value.”

Herbst Gaming operates several casinos and some 7,000 slot machines in approximately 700 locations around Nevada, mostly inside restaurants, taverns, convenience stores and bars that can have up to 15 slot machines. In its latest quarterly report from November, the company reported a net loss of $28.9 million for the quarter ended Sept. 30.

“There is no question the smoking ban had a dramatic impact on our route operations and has fundamentally changed the slot route industry,” Herbst Gaming President Ed Herbst said in a conference call with analysts after the results were announced.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.