The billionaire American businessman behind the Soho House chain of private members clubs, Ronald Burkle (pictured), has reportedly approached Caesars Entertainment Corporation about the possibility of purchasing its giant Rio All-Suite Las Vegas Hotel and Casino.
Venture capital expertise:
According to a Wednesday report from the celebrity news and gossip domain at PageSix.com, 66-year-old Burkle is also the managing partner for private equity and venture capital firm, The Yucaipa Companies, and was recently spotted at last month’s Super Bowl LIII in the company of Brazilian model and actress, Gisele Bundchen.
Change of direction:
The Las Vegas-headquartered corporation is responsible for around 25 casinos across the United States including the iconic Caesars Palace Las Vegas Hotel and Casino but has seen the value of its shares fall by approximately 30% over the course of the past year. This decline recently prompted prominent investor, Carl Icahn, who holds an almost 10% stake in Caesars, to ink a deal that involved the casino firm naming of a new trio of directors to its board. These executives are now said to be investigating the possibility of offloading the entire firm or merging it with a rival such as MGM Resorts International or Eldorado Resorts Incorporated.
PageSix.com reported that The Yucaipa Companies, which was established by Burkle in 1986, is dedicated to revitalizing the fortunes of underperforming companies with its current interests encompassing stakes in numerous retailers including Barneys New York Incorporated and the Fresh and Easy chain of British retailer Tesco.
Should California-born Burkle successfully negotiate a deal to purchase the 2,522-room Rio All-Suite Las Vegas Hotel and Casino, the businessman intends to name Scott Sibella, who recently left his job as President and Chief Operating Officer for the nearby MGM Grand, as the property’s new boss.