A Grosvenor casino in Reading may be forced to close its doors after making combined losses of £2.3m over the last six years, reports the Reading Chronicle.
Grosvenor Casino Reading Central suffered an operating loss of £500,000 in the last financial year, with further losses of £400,000 forecast for next year if the casino were to stay in operation.
A letter sent to employees from Rank Group – owner of Grosvenor Casinos – outlined plans to close the location on Queens Street, which is one of two Grosvenor casinos in Reading.
The letter noted that revenue performance was £630,000 (19 per cent) below budget, and operating costs have increased by two per cent in the last eight years while revenue has declined by 20 per cent in the same timeframe.
“These financial challenges have resulted in a position where continued operation of the venue may no longer be commercially sustainable,” said the letter from Rank Group.
“Therefore, having carefully considered all available options, the company is proposing the permanent closure of Reading Central.
“The proposal has not been made lightly. However, the company believes closure may be necessary to mitigate ongoing financial losses, protect the overall health of the wider business and enable resources and investment to be focused on those areas with stronger commercial prospects and long-term growth potential,” the letter added.
While the decision to close the casino could put dozens of jobs at risk, the letter also emphasised that “no final decisions regarding redundancies will be made until the consultation process has been completed”.
Speaking to the Reading Chronicle, a Grosvenor Casinos spokeswoman said: “We can confirm that we have taken the difficult decision to begin a consultation process to explore options for the long-term sustainability of Grosvenor Casino Reading Central.
“We are working closely with our team members in Reading Central to ensure we keep them updated and informed as we go through this process.”
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