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sls fred segal gone closed bye bye

Discussion in 'Misc. Vegas Chat' started by paperposter, Aug 29, 2015.

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  1. paperposter

    paperposter VIP Whale

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    http://www.vegashotelnews.com/2015/08/fred-segal-closes-at-sls.html

    SATURDAY, AUGUST 29, 2015
    Fred Segal Closes at SLS
    Part of the SLS business plan was to bring popular Los Angeles restaurants and shopping options to Las Vegas in an attempt to capture the LA crowd. One example of that was having Fred Segal as the exclusive retail partner of the resort.




    I NEW THEY WOULD HAVE PROBLEMS , THAT 99.99 PERCENT WOULD HAVE KNOW IDEA WHAT FRED SEGAL WAS ,JUST ONE OF THE MOST EXPENSIVE SHOPPING STORES IN LA WHILE THEY TARGET LA CLIENTAL ,NOT LOCAL YEAH RIGHT , THAT JUST NEVER WORKED SO IM NOT SURPRISED 200-300$ T SHIRTS DIDNT WORK .SO BYE BYE

    PP
    VEGASBRIGHT.COM

    FOR SALE SLS COMING SOON
     
  2. C0usineddie

    C0usineddie VIP Whale

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    Ok so you say the sls with all its debt is for sale.

    Who do you think is in a position to buy it and what will they do to turn it around?

    A grind joint with a roller coaster , nascar cafe and $1 shots and beer perhaps?
     
  3. paperposter

    paperposter VIP Whale

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    rename it , nothing they have done has worked, u can into there clubs for free there basicaly empty, the reasturants are empty, the hotel is empty, they cared about the celebrities more about paying guest on oppening nite disaster, people keep saying if the can stay afllot till resort world and the others but thats 1 ahalf to 2 years away and there target asians who arent going to sls.

    i think wynn would have more competition from resorts word and packers place, pluse rock in vegas iant coming back till 2017 if there lucky it was a disaster , it sits empty for the next year and a half

    they need to do a promotion with og's and the local dealers to get people there.

    shit cab cost 30$ just to get there and then theres nothing there.


    there already giving away to locals feee play fre gifts , car money and knowbody will show up, i find there slots to be very tight.they just got off to a bad start.

    they had the we are better than you attidude from la like they run there nite clubs that they wont let you into, its sams attidute it worked in la but not in vegas
     
  4. UTE

    UTE Plastics

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    Pronouncing SLS dead after a year is premature and a over-reaction. Other hotels/resorts on The Strip have taken 5 to 7 years to make a profit.

    Bill
     
  5. chitownjohn

    chitownjohn High-Roller

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    You could be right but when was the last time this property operating as Sarah or SLS turned a profit, maybe 20 years ago? Right or wrong I think a lot of folks are factoring the historical performance in addition to the last year.

    We'll see what happens but they have their work cut out to salvage this property under the SLS brand.
     
  6. zignerlv

    zignerlv Low-Roller

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    Actually it's not. The most important issue here is not profit, but rather the negative cash flow. SLS has both losses and negative cash flow, but the cash flow is the most serious issue.

    SLS will be sold at a loss or go into bankruptcy in within the next 12 months. That is near certain.

    By the way, can you tell us 3 of the Strip casinos that took 5 to 7 years go make a profit after opening?
     
  7. Mirageluvr

    Mirageluvr Low-Roller

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    When we visited SLS this month the casino was DEAD. I thought the casino was nice and the service was OK. I had an issue with a slot door being ajar, and had to seek out an attendant to fix it, as no one responded to the issue. Fred was also dead. IMO, private equity will turn off the money spigot early next year. Give someone else a chance to run it....it has potential.
     
  8. Breeze147

    Breeze147 Button Man

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    The outside is ugly and you hardly know what it's supposed to be.
     
  9. UTE

    UTE Plastics

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    Without even looking up the numbers, I know of three major Strip casino/resorts that fit. You need to do your own homework.

    Bill
     
    Last edited: Aug 30, 2015
  10. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    The obvious is being overlooked here. Even if SLS files for bankruptcy, it would likely remain open. So saying its going "bye bye" is very premature
     
  11. paperposter

    paperposter VIP Whale

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    i know it will remian somebody will buy it , it was tounge and cheek but but atleast change the name its not up to sls standards and its a disaster , and i dont have to say bye bye as know body ever goes there,
     
  12. nostresshere

    nostresshere Mr. Anti Debit Card

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    I am of course not representative of the masses or anyone here, but we have never been there and have no reason to go there that I can think of. We do Vegas 2-3 times a year. Most MGM and CET. We have wondered into and maybe spent a little at the other casinos on the strip, but.... bottom line... never been to SLS and probably will not be there.
     
  13. Terry Benedict

    Terry Benedict VIP Whale

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    I had never heard of the SLS brand until they changed the Sahara name. So it's not a draw. When I go to Vegas, my visits are determined by walking to fun. If I can't walk there, I probably won't go there. If it isn't going to have the potential to be fun, I'm won't go there. So SLS doesn't draw me in.

    I can't believe they thought a name of an exclusive brand would draw in thousands of people a day. I feel like they should have looked into the Gucci and Hermes stores to see how that works out. Good luck getting your exclusive loyal customers to pay your mortgage. Hello... you need to get the masses walking in your door.

    And it's risky having the location they do.

    So good luck to them. They're going to need it.
     
  14. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    I doubt anyone will even buy it. It will simply continue to operate in bankruptcy. Happens all the time. In fact, its happening right now on the Strip!

    As for SLS standards, I agree with Terry. I don't live in CA, so I have no idea what the "SLS standard" even means. All I care about is what they offer in Vegas. Like most of the posters on this Board, I was completely underwhelmed the one time I visited SLS.
     
  15. natedog666

    natedog666 17 and 20 Expert

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    Their offer of incentives were a joke compared to Wynn and MGM. Even Trop beat them on incentives. However, they did have 10x odds on a special craps table....but no incentives.
     
  16. Someone

    Someone High-Roller

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    I think there is a difference between "not being profitable" and being "cash flow negative" on day to day operations

    if you are deep in invested money on a property and it is taking in more each day than it cost to be open each day less servicing the investment or giving a return on that investment you can probably wait it out for a while because your options are sell at a loss and hope to find something to put any returned money into that would be profitable or close and still have some overhead even if low or wait it out and hope income improves to the point you start to earn a return on investment

    if you are deep in invested money on a property and each day it cost more to be open than you take in well after a while you have to consider that getting some small amount of money for the place and walking away is a better option than having money tied up AND paying more money just to keep the doors open

    at least for a similar situation at Downtown Grand their investors have said that a year is about all they are willing to spend money each day to keep the doors open and I am not sure of the comparison between the investment groups for SLS Vs DTG, but DTG has some pretty deep pockets that own it and they could probably afford to float the place for a couple of years if not longer, but they have already said they have a date to pull the plug......I am not sure SLS has that money behind them and they surely do not have the management that anyone would trust to just toss in more money without wholesale change
     
  17. alexanbo

    alexanbo High-Roller

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    The fact that Stockbridge has actually had to put cash in to keep the place afloat is probably the biggest red flag.

    They financed the reno, mostly with that Visas for cash program so I'm not sure those investors care a whole lot about getting their money back or they can't complain too loudly because of the negative PR that's already around that program.
     
  18. leo21

    leo21 VIP Whale

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    I'll blindly go along with the assertion that it can take 7 years to make a profit even though I can't recall anything like that, at least not pre recession. Cosmo fits the bill, I suppose. The problem here is that there are no signs of growth. They failed to draw their target audience and still haven't effectively re-positioned themselves. Cosmo had a lot to overcome but people were talking about it because of the balconies, the restaurants, the TV commercials and the unique approach on design. The only reason the doors are still open at SLS are due to cash infusions from a private equity firm that's damn near close to calling "No Mas!" SLS is ripe for takeover by its creditors. I don't think they can even make a case for reorganization.
     
  19. 44inarow

    44inarow VIP Whale

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    The other thing about Cosmo is that not only were people talking about it, but it was clear that they had solid traffic. Obviously something wasn't going right because they weren't turning a profit, but it was very possible to look at the crowds at the place (the casinos, restaurants, bars, and nightclubs have always been busy) and see that it had the potential to make money. SLS, on the other hand, seems to always be dead.
     
  20. Mirageluvr

    Mirageluvr Low-Roller

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    Agreed!
     
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