Privé, Living Room close at Planet Hollywood

The troubled and bankrupt Privé Nightclub and its adjacent Living Room ultralounge inside Planet Hollywood Resort have closed, most likely for good, sources said Friday.

The nightclubs, which had been operating under 30-day temporary licenses from Clark County, quietly ceased operations Monday night.

Last month, Harrah's Entertainment, which assumed ownership of Planet Hollywood Resort in February, told the clubs' Miami-based owners to either pay past-due rent and expenses or leave the Strip hotel-casino.

The owners, Opium Group, ran afoul of state gaming regulators and Clark County authorities last year over the operation of the nightclubs. The company filed Chapter 11 bankruptcy protection for the nightclubs in November in Miami.

An attorney for the nightclubs did not return phone calls Friday. Clark County spokesman Dan Kulin said county authorities had been informed the clubs would be closing.

Harrah's spokeswoman Jacqueline Peterson confirmed the clubs had closed but said the casino operator had not determined any use for the nightclubs' space inside Planet Hollywood Resort.

In March, Harrah's attorneys said in a motion filed with the bankruptcy court that the Privé operators were past due on rent since the beginning of the year and were delinquent on paying their share of a $500,000 fine assessed by the Nevada Gaming Commission last year on Planet Hollywood Resort's previous owner.

Planet Hollywood Resort's former owners settled a multicount complaint with gaming regulators for not properly policing actions by Privé's operators. The complaint included allowing underage and excessive drinking at the clubs and dumping inebriated patrons in the Planet Hollywood casino.

The Privé owners agreed to pay $375,000 of Planet Hollywood's fine through an initial payment of $125,000 and five monthly payments of $50,000. According to the court filing, only one $50,000 payment has been made.

Harrah's had asked the court for approval to evict Privé, but nightclub operators sought an extension to decide whether they want to retain their lease at the casino.

Harrah's took over Planet Hollywood Resort after the previous ownership defaulted on its loans. Gaming regulators let Harrah's pay $70 million to acquire $306 million of the resort's debt, which was converted into equity. Harrah's also took on the property's remaining $554 million mortgage.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.