Operator of nightclubs acquires rival
Las Vegas-based nightclub operator Angel Management Group acquired rival Pure Management Group, which gives the company a strengthened presence in the Strip entertainment and nightlife market.
The transaction was announced Wednesday and took effect immediately. Angel now has control of some of the Strip's most popular venues, including Pure at Caesars Palace, LAX at Luxor and the Social House inside Crystals at CityCenter.
Financial details weren't released.
Angel now operates many of the pool parties and clubs inside casinos owned by MGM Resorts International, including the Wet Republic, Tabu, Moorea and Studio 54 inside the MGM Grand, Mix Lounge at Mandalay Bay and ROK Vegas at New York-New York.
Angel also operates the Rehab pool party and Vanity nightclub at the Hard Rock Hotel.
"This is the best possible thing that could happen to the Vegas nightclub scene," said Branden Powers, a former nightclub owner who is now a nightclub industry consultant. "Angel will bring a creative energy and soul into these boxes. You may see Angel go in and rebrand and rename these places."
With the acquisition, Angel will compete against the Light Group, which operates eight clubs on the Strip, including Haze at Aria, Carmel and The Bank at Bellagio, and Jet at The Mirage. The Tao Group operates the nightlife inside The Venetian and Palazzo while Wynn Resorts Ltd. operates the clubs inside Wynn Las Vegas and Encore.
The Strip nightclub scene has boomed in the last decade as resorts have added venues and brought in outside operators to manage the facilities. But there have been some setbacks and state gaming regulators began to crack down on casino operators when clubs were caught allowing illegal activity, such as drug usage and underage alcohol consumption.
In 2008, the former ownership of Planet Hollywood Resort agreed to pay a $500,000 fine to state gaming regulators for not maintaining sufficient control over the Privé Nightclub and its sister ultralounge, the Living Room. Last year Privé filed for bankruptcy and the venues have since closed.
Powers said the Pure-operated clubs, which includes Coyote Ugly at the New York-New York and Dick's Last Resort inside Excalibur, needed an operator with a new vision who could modernize the venues and their musical offerings.
Angel Management has been operating nightclubs in Las Vegas since 2005. It was originally founded in 1999 as Angel Music Group. With the transaction, Angel Management will employ more than 600 workers, including venue-level staff.
Angel Management Chief Executive Officer Neil Moffitt said his goal was to create the Strip's largest nightlife company.
"Our first priority will be to expand upon the success of our current venues and develop our existing brands in other territories," Moffitt said.
He added that Angel Management plans to launch several new Las Vegas venues next year, including XOXO, a concept than Angel Management describes on its website as Las Vegas' first supper club, a high-energy indoor-outdoor restaurant and lounge. The business, located in a yet-to-be named Strip resort, is expected to open on New Year's Eve.
The deal comes almost 30 months after Pure ran afoul of the Internal Revenue Service. In February 2008, the IRS investigated Pure Management Group and its managing partner, Steve Davidovici, as part of a criminal investigation into the club's cash handling and tipping policies. Pure went through a yearlong restructuring.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
