Rumjungle announced today it is seeking bankruptcy court protection under Chapter 11 reorganization to prevent threatened closure by Mandalay Bay.
One of the original restaurant/clubs when Mandalay Bay opened more than decade ago, Rumjungle had previously filed legal papers asserting that the hotel’s opening of the eyecandy sound lounge violates its contract with Rumjungle, which establishes Rumjungle as the sole nightclub on the property, and that the unlawful competition from eyecandy and other venues has adversely impacted Rumjungle’s finances.
Rumjungle previously sued Mandalay Bay over the opening of eyecandy and other ventures and indicated they will use bankruptcy court protections to contest Mandalay Bay’s actions and keep Rumjungle open.
"It is our goal that Rumjungle will remain open and all employees will remain employed while we assert our contractual right to be the sole nightclub at Mandalay Bay," said Neil Faggen, manager of Rumjungle. "With the exception of this dispute, Rumjungle’s finances are in good order and we continue to provide a unique and first-class dining and nightclub experience."
The Chapter 11 filing was made Tuesday. Rumjungle’s lawsuit against Mandalay Bay is scheduled for trial some time later this year.
"Mandalay Bay has no right to resort to intimidation or threats of closure when we believe it is Mandalay Bay that has violated the nightclub-exclusive provision of our lease agreement," Faggen said. "Rumjungle has acted in good faith at all times, and we will continue to fight for our employees and valued customers."