Revel Entertainment Group laid off about 400 workers Wednesday and stopped work on the inside of its new Atlantic City casino hotel.
The company has to find more money to complete the mega resort, according to (?). Kevin DeSanctis, Revel’s Chief Executive Officer, said construction will continue on the exterior of the 46-story beachfront resort.
By stopping work on the interior, Revel hopes to space out the construction with the money it currently has on hand. DeSanctis would not say how much money Revel and investment partner Morgan Stanley have spent so far, or how much more is needed to complete the job.
Revel's original plan was to open Atlantic City’s 12th Casino in the summer of 2010. The company put out a statement Wednesday:
"REVEL Entertainment has developed a plan that we expect will carry the project through the next 12-15 months, well into 2010, subject of course to market and financing conditions. Construction will continue on the core, shell structure and enclosure. Work on the interiors will be delayed and those crew members will be temporarily laid off until the interiors are restarted. This modification to the construction timeline will allow the project to continue moving forward at a sustainable pace in spite of the challenges experienced in the current economic environment. Gov. Corzine and his office have been champions of the project and the progress it represents for the South Inlet and we are grateful for their support. We are also appreciative of the support we have received from state and local leaders, the city of Atlantic City and this community."
The company has about 1,100 employees.
The project has been continuing despite a plane crash that killed three Revel executives last July.
