KAOS Day & Nightclub is closing with immediate effect
KAOS at ‘The Palms’ hotel in Las Vegas, Nevada, one of the biggest and most prestigious clubs in Vegas, featuring more than 73,000-square-foot, had only opened this year in April and contracted the biggest artist in electronic music for residencies like Eric Prydz and Marshmello is closing its doors.
Red Rock Resort, the owners of the resort and club have released the following statement late afternoon on Tuesday, November 5th:
‘This afternoon, Red Rock Resorts, Inc. announced the closing of KAOS dayclub and nightclub at the Palms Casino Resort, effective immediately. While Palms has experienced exceptional growth across both the gaming and non-gaming segments of the business, the expense side of the business has been challenging to date, due in large part to the entertainment and fixed cost structure associated with KAOS. Therefore, we have decided to take some time to reassess the programming and use of those venues going forward. In the interim, we intend to use the venues for private meeting space and special events, in addition to everyday resort pool operations.’
The opening of KAOS, which was part of a $690 million redevelopment of the resort, was set to break the lines between clubbing and a hotel resort, creating an Ibiza like experience for electronic music in the middle of Nevada, US. During their quarterly earnings calls, Red Rocks Resort has announced a net loss was $26.8 million for the third quarter of 2019 which is a decrease of $51.9 million year over year, primarily due to one-time charges relating to the termination of certain artist performance agreements and employment arrangements at the Palms, as well as higher depreciation and amortization relating to the Palms redevelopment project. Along with these, it was also announced that KAOS will be closing with immediate effect effectively cancelling any upcoming performances at the club.