Isle of Capri Casinos Losing Money as Expansion Explodes

While the vast majority of casino operations continue expanding at a fantastic rate, Isle of Capri Casinos, Inc. is being forced to reorganize, reassign workers, and cut back on corporate staff, due to a quarterly loss of over $24 million. Isle of Capri officials blame unavoidable one-time costs for their financial distress, including damages to Biloxi locations from Hurricane Katrina and the subsequent relocation of the corporate headquarters from Mississippi to Missouri. Another problem has been the Isle's casino in Coventry, England, which has underperformed in the face of new laws forbidding smoking at the property. Restructuring has begun at the top, where successful executives have been raided away from Trump Enterprises. Virginia McDowell, president and CEO of Isle of Capri, came over from Trump in July to replace retiring Tim Hinkley, and this week Trump's chief financial officer, Dale Black, left to join the Isle in the same position. Although the financial pinch has caused Isle of Capri to announce the elimination of roughly 40 of the 200 positions at its corporate headquarters, an Isle spokesman stated most of those losing jobs would be transferred to jobs nearer the Isle's operations rather than let go. Isle of Capri currently runs 18 casino locations, including riverboats and land-based operations, in seven states and overseas.

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