After bringing Ocean Casino Resort back from the brink of bankruptcy, CEO Terry Glebocki resigned abruptly last week after two years. She apparently saw the handwriting on the wall, because the next day, Detroit MotorCity casino owner Ilitch Holdings received an interim casino authorization on October 14 from the Casino Control Commission to take over management of the property. Ilitch, which also owns Little Caesar Pizza and the Detroit Tigers, purchased as much as 50 percent of Ocean for $175 million. Any decisions will be a joint effort between Ilitch and Luxor Capital Group, a hedge fund which owns the other half.
Funded by Ilitch, Ocean will spend some $75 million in the next year including adding 360 new hotel rooms and 100 suites on 14 floors that were previously unfinished.
Glebocki guided the former Revel to profitability after years of losing money.
“Glebocki has three decades of financial management experience, which navigated Ocean’s course to financial stability,” the casino said in a statement. “Terry is leaving the property as a leading casino resort in Atlantic City.”
Glebocki also left her post as president of the Casino Association of New Jersey, the trade association for the properties in Atlantic City.
Under Glebocki, Ocean cut expenses but still performed renovations to the casino floor, and added amenities for upscale gamblers, which helped grow its revenue from both casino play and non-gambling sources. In April, the company spent $15 million on interior work, as well as renovations to pools, cabanas, and its beachfront.
For the first six months of this year, Ocean posted a gross operating profit of almost $25 million, while during the same period a year ago, the company had an operating loss of $12.4 million in the same period a year ago.
During her financial career in the industry, Glebocki worked for Bally’s, Trump Plaza, and Tropicana Entertainment.
