ATLANTIC CITY – Two executives of the Ocean Resort Casino were fired on Monday, signaling a new direction taken by the New York-based hedge fund, Luxor Capital Group.
Frank Leone, the former CEO of the building, and Alan Greenstein, now a former chief financial officer, were fired less than a month after Luxor took control of Ocean Resort, Colorado-based developer Bruce Deifik .
Bob Ambrose, Assistant Professor of Casino Management at Fairleigh Dickinson University and consultant for the gaming industry, said the change of direction at Ocean Resort was not a surprise since Luxor took control of the majority last month .
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"Honestly, I thought it would have happened sooner," said Ambrose. "Changing the leadership or hierarchy of a company is only part of the investor's overall strategy. Simply put, this is usually part of a broader plan to move initiatives forward and merge the funds they invest in Ocean Resort. "
Eric Matejevich, former chief operating officer of Atlantic Club Casino Hotel, currently closed, will succeed Leone Acting. Terry Glebocki, recently appointed chief financial officer of Tropicana Atlantic City, has been announced to replace Greenstein.
"As we improve the experience of guests and players, including dramatically increasing our entertainment programming and events throughout the year, adding a world-class buffet, suites and extra rooms, additional investments in casinos and other exciting projects. – The expertise of Terry and Eric will be invaluable to continue our momentum, "said the company in a statement Tuesday night.
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Deifik purchased Ocean Resort in January 2018 for $ 229 million from Florida-based property developer Glenn Straub, with significant financial support from Luxor and JPMorgan Chase Bank. Leone and Greenstein were both part of Straub's TEN casino plan, which never materialized. Deifik selected the two executives at the opening of the property on June 27, the same day as the Hard Rock Hotel & Casino Atlantic City.
"We would like to thank Alan Greenstein for his years of service and wish him every success in his future endeavors," said the company's press release. "We also wish Frank the best of luck, who will look for other opportunities after providing significant leadership at the Ocean Resort casino."
In a few months, the building began to struggle in the extremely competitive market of Atlantic City casinos. According to data from the Division of Gaming Enforcement, Ocean Resort gambling revenues are in the last position or near the bottom of the nine casinos in the city. Luxor and Ocean announced a change of direction at the end of January and planned a $ 70 million investment in the property.
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In February, at a meeting of the Casino Control Commission where the board had approved a trust assignment agreement transferring Deifik's majority control to Luxor, the video game regulators revealed that Ocean Resort did not It was not consistent with the provisions governing financial licensing since November and that the casino hotel had almost lost $ 23 million since that time. The trust documents also described Luxor's investment plan, which included the use of $ 50 million to repay a portion of the capital owed to JPMorgan.
Matejevich was appointed administrator of the assignment agreement approved by the gaming regulatory authorities approved on February 6.