Because he has not been authorised to transfer the games to the Palm Beach, Patrick Partouche, on Sunday at midnight, closed the Casino situated at the seventh floor of the Carlton in Cannes.
A Casino in Cannes which is closed in the hottest period of the tourist season, that’s unusual. However, that’s what happened in the night from Sunday to Monday at the Carlton Casino Club (160 million francs of gross receipts for games in 2000 and the first French casino for games of table). As Patrick Partouche, the general manager had announced, the casino closed on Monday August 0.00 am. Besides, Isidore Partouche, the founder of the Partouche group, the president of the board of directors, closed the casino.
The Home Department refuses the transfer to the Palm Beach
The reasons ? This is not pure masochism. There have been negotiations with the Home Department for more than one month. Six months ago, Patrick Partouche asked fro the renewal of games at the Palm Beach, the former great casino in Cannes that was bought up by the Partouche group in 1999. He thought that the transfer of games was all the more natural as the lease at the seventh floor came to an end August 5th 2001 (it was signed August 5th 1998 for a three year long period) and as all authorizations were granted (city, safety, prefecture, etc.) for the transfer to the Palm Beach.
One month ago, however, the last authorization, of the Home Department, was not granted. Bernard Brochand, the new Mayor of Cannes, was gone to Paris to negotiate in favour of the transfer. The Carlton Casino Club is a real treasure for the city. Last year 35 millions francs coming from the city tax on games came in addition to the receipts in Cannes. Moreover, Cannes was particularly committed in boosting the Palm Beach closed since 1991. However there was no result.
154 jobs cuts off
Yesterday, before midnight, officials of the Carlton Casino Club waited uselessly for a fax from the Home Department which would authorized the transfer. Besides, there were few hopes. Some days before, Daniel Vaillant, the Minister, confirmed a refusal justified by an uncertain judicial situation about the property of a part of the land the Palm Beach is built on. A conflict situation (the city and the union of co-proprietors of the Croisette are fighting for the property of the land) which is lasting for ten years now !
For Patrick Partouche, there was only one solution: closing the casino which would lead to lay 154 jobs off (the casino and the restaurant “Belle Otéro” included). In spite of a face-about of the Home Department which, on Friday August 3rd, unofficially indicated that they were ready to change their position to make the casino stay at the Carlton. In case of a lack a new legal lease, they declared they were satisfied with non-noticing the termination of the business lease which links the Partouche Group to the Société des Hôtels réunis, the owner of the premises.
A casino in a structural deficit
And this situation has made Patrick Partouche really upset. “I’m refused the Palm Beach and I’m asked to stay in the Carlton premises fro one year with suspension conditions ! No one is interested in this solution. Our group is not interested in this solution: the Casino Carlton is in a structural deficit since the creation in 1989. This year, we are going to loose between 5 an 7 million francs. Neither is the Carlton which is going to start an extension operation of 600 million francs in September and which intends to take the seventh floor back in order to create high standing rooms. The city isn’t interested in it neither since they are decided to boost the Palm Beach again.”
What will happen next ? A lay off process must be initiated as soon as today for the 154 employees who are supposed to be recruited by other casinos and restaurants owned by the group in Juan-les-Pins, Beaulieu, Aix or Lyon. The case of the Carlton Casino Club is studied by Isidore Partouche since Monday 0.00 am. It is now up to him to find a solution to the negotiations which have been initiated between one of the most powerful game company in Europe and the French Home Department. And the stake is the mythical Palm Beach…