BOSSIER CITY, LA (KSLA) - Margaritaville has announced that they are ending their pending merger to an Alabama Indian tribe.
In a press release issued on Monday, the casino and resort says the merger ended because the requirement that the casino be operated under the tribe's Wind Creek brand rather than the Margaritaville brand could not be met.
KSLA News 12 first told you about this disagreement in early April. Uncovered documents revealed the dispute centered on whether the company that owns and operates Shreveport-Bossier City's newest casino is legally bound by an agreement requiring it to remain under the Margaritaville brand for the next 35 years - even if it's sold to a new owner.
According to the release, BCV's only financial obligation to Margaritaville was to pay it two years of license fees, plus interest, and thereafter BCV has no further obligation to make any future license payments.
BCV has paid Margaritaville.
"BCV is pleased to have satisfied in full its financial obligation to Margaritaville and to continue using the Margaritaville brand without further financial obligation for future license fee payments. BCV is committed to continuing to provide a first-class gaming and entertainment experience to its loyal customers under the Margaritaville brand," said BCV's CEO, Paul Alanis.
"For me as an owner, this isn't a sad day. This is a happy day. These are my friends. This is a great community that I've been involved in for over 20 years," continued Alanis. "We'll continue as Margaritaville and make it bigger and better into the future."
The decision was mutual and amicable, according to the release.
The sale price was $335 million.
"There were no bad developments. Either the transaction would have gone through and that would have been a good development or we would have remained Margaritaville and we are very happy to do that as well," said Senior VP and GM Barry Regula.
So what does this mean for customers? Alanis says they've continued to make improvements during the merger discussions and arbitration, like adding new restaurants. They plan to keep doing that under the Margaritaville name. Possible new additions include more hotel rooms or a parking garage.
"This is a great opportunity for us," said Regula. "We have a lot of goodwill and investment in the name. People know us and like us. We will continue to grow on that goodwill that we've created."