Sobe Holdings, the company which participated in the bid to purchase the failing and bankrupt Atlantic Club Casino and Hotel, and which lost out to Caesar’s Entertainment and the Tropicana Casino, has requested a rehearing on the decision so their offer can be reconsidered. Sobe had ofered $1 million more than its competitor and had planned to keep the casino operational, as opposed to the intentions by the rival group.
Gloria Burns, Chief Judge in the case, had granted the bid to Caesar’s Entertainment and the Tropicana Casino because she had considered it less risky than Sobe’s offer. The Caesar’s group is planning on shuting down the casino in an effort to reduce competiton in the limited Atlantic City area. Caesar’s believes that reducing the number of casinos in Atlantic City will in fact help the waning economy of the area.
Sobe on the other hand is arguing towards the opposite idea. It believes that by refurbishing and reopening the casino it will become financially viable while saving the jobs of the now unemployed Atlantic Club employees.