Hard Rock’s statement is seemingly at odds with a regulatory filing by The Star. The Star’s filing states:
The Company has received inbound interest from a number of other external parties regarding the potential transactions, including a consortium of investors, which includes the entity Hard Rock Hotels and Resorts (Pacific), which The Star understands is a local partner of Hard Rock.
Hard Rock, however, made it perfectly clear it is “not involved in, nor has it authorized, any discussions, activities or negotiations on its behalf in connection with a proposed bid for Star. Hard Rock International has similarly not authorized the use of the Hard Rock brand in connection with any proposed bid for Star by any third party.”
Shares of Star, predictably, tanked after Hard Rock’s press release.
When it rains...
The confusion over The Star’s filing is hardly the only issue plaguing the beleaguered casino company. In September 2022, the NSW Independent Casino Commission (NICC) issued a report finding The Star was unsuitable to hold its Sydney casino license due to poor oversight of money laundering risks. The Star was fined A$100 million, its license was suspended, and company operations were placed under external supervision.
The Star is currently undergoing yet another regulatory inquiry in its fight to keep its gaming license. That final regulatory report is due on July 31.
Meanwhile, The Star is shedding executives faster than a labrador retriever in springtime. The Star’s Chairman, David Foster, announced his intentions to step down from the company just last month. Foster had held the position for roughly one year. Foster had recently picked up additional duties following the departure of both the CEO and CFO in March.
