Vegas Nightclub Boom Ends With $28 Million Palms Bar Writeoff
- Poolside party spot featured 60-foot Damien Hirst sculpture
- Company CEO says market for high-end clubs has become glutted
Red Rock Resorts Inc. is closing the Kaos nightclub at the Palms casino, effective immediately, and will take tens of millions of dollars in charges on canceled contracts with performers and other expenses.
The closing is a setback for the Fertitta brothers, Frank and Lorenzo, who control the Las Vegas casino company started by their father. They bought the off-the-Strip Palms three years ago for $313 million and spent some $679 million on renovations, adding high-end restaurants and artwork, such as Damien Hirst’s shark in formaldehyde, which sits above a bar.