U.S. Bankruptcy Judge Linda Riegle denied an emergency motion by Lynyrd Skynyrd BBQ & Beer and American Burger Works at the Excalibur to reopen the restaurants in a court hearing on Friday.
Drive This! Entertainment says it did not receive proper notification of plans to evict when the doors were shuttered on Wednesday.
"Riegle said the Excalibur appeared to be within its rights to lock the owners out of the restaurants after they failed to pay past-due rent and failed to resolve default notices dating to March," Vegas Inc reports.
The restaurants' owners received eviction notices last Wednesday morning and Excalibur put up construction walls separating the restaurants from the casino floor.
That afternoon, both restaurants filed for Chapter 11 bankruptcy in hopes of retaining their leases. That bankruptcy law automatically prohibits evictions and lawsuits involving debtors.
The combined restaurants owe more than $1 million for buildout costs and are behind on rent.
"Both sides indicated there's little chance the restaurants, which employed nearly 90 people, will ever re-open," Vegas Inc reports.
· Bankruptcy Judge Says Lynyrd Skynyrd Restaurant To Stay Closed [VI]
· Lynyrd Skynyrd Sues Excalibur to Reverse Eviction [~ELV~]
· All Coverage of Lynyrd Skynyrd BBQ & Beer [~ELV~]