Last week we briefly mentioned that Phil Falcone’s part ownership of the hockey team, the Minnesota Wild, might prevent him from investing in Hooters, should he be interested (the NYPost believes he is).
The issue wasn’t the Hooters restaurant or the girls, but a small casino business partially owned by Hooters.
From last week:
Big dilemma for Phil Falcone: he wants the new Hooters Casino in his portfolio, but… his fund, Harbinger, has a 40 per cent stake in the NHL team, Minnesota Wild, and the hockey league forbids its owners from also owning a casino with a sports book — Hooters has a sports book.
But a Vegas journalist, Howard Stutz, says the reported conflict is a non-issue – investing in both hockey and Hooters should be fine:
Even if Falcone’s hedge fund takes an ownership presence in Hooters, it shouldn’t affect his stake in the Wild.
That’s the good news. The bad news is that the company that owns Hooters might be going broke.
Hooters’ ownership, 155 East Tropicana, said in March that the company was struggling to service its debt and might be forced into filing a Chapter 11 bankruptcy restructuring plan.
Hooters President Michael Hessling said the company is paying its bills, except the mortgage. Constant talks are taking place with note holders.
Of course that’s not bad news for investors like Falcone, who specialises in distressed assets.
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