Jack Entertainment LLC is planning to lay off at least 92 employees after the sale of Dan Gilbert’ Greektown casino to Penn National earlier in May this year.
According to the Greektown casino deal, Penn National will take charge of the operations of Greektown Casino-Hotel for $300 million. VICI will purchase the casino property’s real estate for $700 million and will lease it to a Penn National subsidiary.
The company has said that they would be completing the layoff by the first quarter of 2020. It should be noted that employees at the company are nonunionized and do not have bumping rights.
“Following a strategic assessment of JACK Entertainment’s business portfolio and the subsequent sale of three of the company’s properties, including Greektown Casino-Hotel in Detroit, JACK Entertainment is making changes to the home office as the operational responsibilities have been reduced,” Jack Entertainment CEO Mark Dunkeson said in an emailed statement to Crain’s Detroit.
Jack Entertainment claims to have 120 corporate employees in Detroit and more than 4,000 employees company-wide.
Dan Gilbert’s Greektown casino had been incurring significant losses despite being the third-highest grosser in terms of gambling revenues in Detroit.
Prior to sale, the gambling facility had reportedly been carrying debts to the tune of $400 million.