Gala deal catches Bunnies on the hop

THE LONG-AWAITED return of Playboy Bunnies to London is under threat following the sale of Hilton's casinos to the privately-owned Gala Group last month.

Hilton signed an agreement last April with Playboy Enterprises, the American media and entertainment division, to open jointly a Playboy-branded casino in the heart of London's West End.

Amid a blaze of publicity, the two sides said the club, which was to feature a restaurant, nightclub, bar and shops, could open as early as this year.

But Gala chief executive John Kelly pointed out that the 235 million acquisition of the Ladbroke casinos, completed just before Christmas, did not include any Hilton/Playboy agreement, nor is he under any obligation to carry through tentative plans made before the takeover.

"There was no definitive contract, just heads of terms," he said.

Kelly has arranged to meet Playboy representatives later this month, but he made it clear he would not be pressured into picking up the relationship.

"At the moment I have to say that my instinct is that Gala's goal is to incorporate the business we have just acquired," he said.

"There would have to be compelling economic reasons to take on a project of this nature. I am not clear yet whether those exist."

Although the signing of the agreement between Hilton and Playboy generated several days of surprisingly uncritical newspaper features and photo spreads, helped by the hasty importation of a warren of bona-fide Bunnies from Playboy casinos abroad, the rest of the gaming industry was less than envious.

While Playboy is still a massive brand in the United States and elsewhere, it is perceived in Britain as tarnished, tacky and hopelessly out of date.

This was one of the reasons other gaming groups, such as Rank, looked at but never seriously pursued the opportunity to forge a joint venture with the Americans.

Furthermore, Hilton failed to find any suitable location despite having agents scour London for the greater part of 2000 - another reason Gala's competitors are unlikely to be falling over themselves to sign up should Gala decide to dip out.

The former Playboy Casino in Park Lane closed in 1981. Having waited 20 years for the bunnies to return, scores of ageing playboys may have to put on hold the opportunity to relive their youth.

Copyright 2001
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