Greektown Casino lets go of 89 employees
24th June, 2008
Greektown Casino, as part of $7.8 million in reorganization, began making cuts by laying off 89 employees on Monday.
Most of the casino workers who lost their job were not full time workers, with 70 being part-time employees, but most were handlers of table games, according to Greektown Casino’s statement.
“They consolidated the pits. It’s a move to increase efficiency,” said Roger Martin, Greektown Casino spokesman.
The casino filed for Chapter 11 bankruptcy 29 May but has continued construction on its 400-room hotel, which is expected to be open to the public early next year. The Michigan Gaming Control Bank approved $51.3 million in interim financing to keep the project in motion.
“Greektown Casino managers, owners and financial consultants are examining every possible way to make the casino a more efficient and profitable business,” said Craig Ghelfi, CEO of Greektown Casino.
With $314.5 million in outstanding loans, Greektown is expected to see itself out of Chapter 11 by September of 2009 and will hire 400 new employees at the beginning of next year to work the new hotel expansion. The project, which was expected to cost $225 million, has gone over budget by $107 million.
As written in their contract, the laid-off employees will be “first in line” if there are any new openings at the casino.
By Michael
