In a news release issued shortly after
Earlier in the day, Foxwoods posted its quarterly report for the period that ended
"We believe that consumer spending patterns remain challenging in our primary markets, particularly in the mass and mid-tier market segments," the report says. "As well, competitive pressures continue to be impactful, both from the expansion of gaming and marketing activities, in the Northeast gaming market."
The tribe defaulted on a debt of
"At the time, (Foxwoods) and its lenders agreed upon a financial performance forecast that was premised on improved economic conditions and a leveling out of competitive factors," the tribe said in its news release Thursday. "Those developments have been slow to materialize."
"Foxwoods' underlying business remains strong and day-to-day operations continue as usual and without interruption," the tribe said. "Moreover, the failure to comply with the financial covenants does not adversely impact Foxwoods' projected liquidity."
The tribe said it has continued to invest in Foxwoods despite the pressure on revenues. The casino has recently renovated hotel rooms and refurbished its retail and dining facilities. An outlet mall linking the original Foxwoods property to
But the casino has also downsized its workforce in a bid to save on payroll costs. For the nine months that ended
In June, Foxwoods curtailed weekday hours on a portion of its gaming floor.
"We believe, over the long term, that our focus on elimination of unprofitable lines of business and reinvestment in quality patrons will lead to a sustainable level of profitability," the casino says in its report.
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