Plans by Landry’s Restaurants Inc. to buy Eva Longoria’s Beso restaurant in Las Vegas are being challenged, with a competing proposal emerging Monday from nightclub operator Angel Management Group.
Landry’s, which has restaurants nationwide as well as the Golden Nugget casinos, stepped in last week to manage Beso restaurant, averting its imminent shutdown due to continued losses.
Landry’s owner Tilman Fertitta said last week he’s joined forces with Longoria to manage and own the restaurant. Court papers said Landry’s hoped to buy Beso for $1 million out of bankruptcy, plus money it fronts for management services until it acquires the business.
The Landry’s takeover plan, which is to be discussed during a bankruptcy court hearing today, was challenged Monday by some Beso investors including Anthony Vicidomine, who’s been agitating in the bankruptcy case to protect his $651,000 claim against Beso. Vicidomine is also an investor in Longoria's Beso restaurant in Hollywood.
Represented by attorney Gregory Garman of the Las Vegas law firm Gordon Silver, Vicidomine said in a court declaration that he’s partnered with restaurant and nightclub operator Angel Management Group (AMG) of Las Vegas to offer to acquire Beso.
Angel Management, best known for running the Pure nightclub at Caesars Palace, has more than a dozen leases with MGM Resorts International properties including for the Social House in the Crystals shopping center where Beso is also a tenant.
Crystals is part of MGM Resorts International’s CityCenter complex.
"AMG brings to the partnership not only additional capital, but also an expertise in the operation of casino-based restaurants and nightclubs that will ensure the successful operation of Beso Steakhouse and the nightclub upon reorganized Beso's emergence from bankruptcy," Vicidomine said in his declaration, which didn’t say how much money his group would offer to acquire Beso out of bankruptcy.
"Debtor (Beso) is seeking approval – after the fact – of the scheme it has already set in motion to transfer debtor’s assets to a favored buyer who apparently has a pre-arranged deal with Ms. Longoria to provide her with a new equity interest in the acquiring company after the sale," a filing by Vicidomine’s attorney, Garman, said.
"To the extent that debtor desires to sell its assets, a public auction must be conducted at which Mr. Vicidomine and AMG are provided an opportunity to bid, which auction must not be unfairly weighted in favor of" Landry’s, his filing said.
Also objecting were Mali Nachum and her husband Ronen Nachum, who formerly managed the business and now claim they are owed $710,000 for funds they loaned to Beso before they were removed from the firm.
Attorneys for Beso have countered with allegations that Ronen Nachum may have mismanaged and skimmed cash from the business – charges promptly denied by his attorneys.
"Mismanagement, potential self-dealing and apparent usurpation of corporate assets is the underpinning of the debtor’s motion (to turn the business over to Landry’s)," said the filing by one of the Nachums’ Las Vegas attorneys, Brian Shapiro.
Attorneys for Beso were expected to address these objections today.