United Kingdom's Rank Gaming and Leisure Group, who is the owner well known Mecca Bingo and internationally acclaimed Hard Rock Cafe chains, have recently inked several agreements to sell the majority of their bingo parlors scattered throughout the United Kingdom.
Rank's decision to sell some of its businesses has been influenced by falling revenues of almost 14% percent in its 14 bingo clubs located in Scotland following the implementation of the smoking ban. The decision, according to Rank's officials is one way to lessened the burgeoning debt of Rank.
Under the agreements that it has signed with Earth Estates and Solarus Estates, Rank agreed to sell to the two groups 4 of its casinos and 40 of its total of 117 bingo establishments for a total of 172 million UK Pounds , which is equivalent to $315 million dollars.
The bingo establishments will be leased back to Rank for the amount of UK Pounds 11.2 million pounds(equivalent $20.5 million dollars) annually.
The deal follows Rank's move of selling its Deluxe Media and Film branch businesses. Rank is also planning to sell its Hard Rock business.
Sunday, August 13, 2006