Fertitta plays Trump card in Atlantic City

Trump card: When it comes to acquisitions, Houston-based Landry’s Restaurants Inc. continues its hot streak.

Privately held Landry’s, led by island native Tilman Fertitta, announced Monday it had agreed to buy the Trump Marina Hotel and Casino in Atlantic City from Trump Entertainment Inc. for about $40 million.

That’s not bad, considering a few years ago, the property was under contract to another buyer for about $400 million, Fertitta said in an interview Monday.

With a tough economy, strong opportunities abound. And Landry’s hasn’t missed many.

In recent months, Landry’s has reeled in several high-profile restaurant chains at bargain prices, including Bubba Gump Shrimp Co., Claim Jumper Restaurants and Oceanaire Inc. Both Claim Jumper and Oceanaire are hot concepts that got mired in debt as the economy took its toll.

Some of those concepts likely will make their way to the island and Kemah, where Landry’s has invested more than $150 million.

Landry’s, a hospitality, restaurant, entertainment, resort and casino company — with more than 300 retail locations — also is the parent company of the Golden Nugget properties in Las Vegas and Laughlin.

“This is a great property and is going to give the Golden Nugget a great presence on the East Coast,” Fertitta said.

Trump Entertainment began selling off properties as it reorganized under Chapter 11 bankruptcy protection in February 2009.

The company emerged from Chapter 11 in July, according to news service Dow Jones. But when Trump Entertainment Resorts filed for bankruptcy protection, real estate mogul Donald Trump, who owned 28 percent of the company’s stock, resigned as chairman of the board.

Trump was frustrated that bondholders and their allies on the board rebuffed his offer to buy the company and take it private, according to a report by The Associated Press.

The sale of Trump Marina allows the company to lessen its debt load, Dow Jones reports.

“Coming out of a recession, there are opportunities, and you’ve got to take advantage of them,” Fertitta said.

Landry’s intends to honor all existing Trump marina customer points and rewards, not only in Atlantic City but also in the Las Vegas and Laughlin Golden Nuggets, he said. The acquisition means the return of the Golden Nugget name to Atlantic City.

A casino with the same name operated there under different owners in the 1980s.

After it clears the necessary regulatory hurdles, Landry’s plans to re-brand the Atlantic City property into a Golden Nugget Hotel and Casino.

Fertitta on Monday said Landry’s would spend about $100 million making dramatic changes, including updating the entire property with a new look that includes fresh bars, lounges with live entertainment, retail stores and Landry’s restaurant concepts, including Chart House overlooking the property’s full-service marina, Red Sushi, Lillie’s Asian Cuisine and Noodle Bar, Grotto Italian Ristorante and Vic & Anthony’s Steakhouse.

Landry’s expects to complete the improvements by the year’s end.

While casinos, like everything else, have grappled with a recession, Atlantic City still is a $3 billion gaming market, Fertitta said.

Fertitta again denied old and persistent rumors that his island properties were wired for casinos. If casinos ever become legal in Texas and on the island, Landry’s is ready, he said.

“I’m here ready and able,” Fertitta said. “Absolutely.” Want to talk about it?

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Barrel of buzz: In April, this column buzzed that Lebanon, Tenn.-based Cracker Barrel Old Country Store restaurant and gift store chain was considering rolling toward the island.

But those in the know said it all hinged on whether Mooresville, N.C.-based Lowe’s Home Improvement Warehouse nailed a Galveston store on 10 acres of county-owned land north of Broadway between 55th and 57th streets in front of the criminal justice center and not too far from rival retailer The Home Depot, 702 65th St.

Lowe’s has confirmed it plans an island store. And in a recent public meeting, city officials have made references to Cracker Barrel’s island plans, according to some readers.

City officials did not return calls Monday. And officials with Cracker Barrel said there were no immediate plans for a Galveston eatery.

Cracker Barrel, known for comfort foods, typically doesn’t discuss plans until construction gets under way, they said. Stay tuned.

What’s Cookin’: For those who missed Buzz Blog, owner Kristine Garbo has finally officially opened What’s Cookin’ at the Bistro, 926 FM 518 in Kemah.

Before Hurricane Ike struck in September 2008, Garbo owned Seaside Bistro, a popular West End island eatery formerly at 11128 FM 3005.

The storm destroyed that restaurant. She also owned a Kemah eatery by the name of What’s Cookin’, which was destroyed by a fire.

Garbo combined the names of her two former restaurants into one. What’s Cookin’ at the Bistro is serving up old favorites such as “shrimp kisses,” those famous seafood crepes, eggs Benedict, sandwiches and more.

For information, call 281-957-9556.

Biz Buzz appears Tuesdays and Thursdays. We welcome your tips and suggestions. Call 409-683-5248 or e-mail laura.elder(at)galvnews.com.