Affinity Interactive Announces the Successful Transition of Primm Valley Casino Resorts’ Operations
Affinity Interactive (“Affinity” or “the Company”) today announced the successful completion of the transition of Primm Valley Casino Resorts’ (“Primm”) operations by the Company’s subsidiary The Primadonna Company, LLC (“TPC”) to the Primm landlord and Terrible’s.
Contrary to misstatements and what has been reported in the press, the discussions between TPC and the Primm landlord regarding the Primm property lease began more than two years ago. This was done in conjunction with a comprehensive third-party valuation process and market outreach.
TPC determined that the economics of the Primm leasehold interest were no longer viable, and the Primm landlord was not willing to reduce the rent for the Primm property to a sustainable amount. The Primm property was a cash drain of approximately $10-15 million per year for many years, and there was no commercially rational basis to continue investing in the property or to financially support its continued operations.
Affinity and its sponsor has a long history with the Herbst family, having worked together during the Herbst Gaming bankruptcy restructuring more than a decade ago. In that process, TPC preserved jobs, revitalized the Primm properties, and was a responsible employer and a valued member of the gaming community in Nevada. It’s unfortunate that the Primm location has become obsolete and the Primm landlord did not work with TPC on an economically rational solution.
