Penn National to sell Tropicana real estate, furlough 26K workers

Penn National announced it is selling the real estate assets of the Tropicana Las Vegas and a ground lease of a Morgantown, Pennsylvania to Gaming and Leisure Properties for $337.5m in rent credits as it responds to the COVID-19 crisis.

The company is also furloughing 26,000 employees beginning April 1. 

Jay Snowden, President and CEO of Penn National, said: “”As the global COVID-19 health crisis continues to evolve, we are navigating through this unprecedented time for our Company, our industry and our nation. With all of our 41 properties in 19 states temporarily shuttered, like many others in the gaming and hospitality sector, we are making difficult decisions to help preserve our liquidity and ensure a brighter future for our Company’s team members, customers, shareholders and other key stakeholders.” 

Snowden said that employees enrolled on company health care plans will remain covered through June 30. 

Snowden and his senior management team have given $425,000 in personal contributions to the company’s relief fund. 

Furloughs will include a vast majority of the company’s corporate team members. 

Snowden said: “The decision was extremely difficult to make for all of us at Penn. Penn National is a family, and we deeply regret the hardship this will place on you and your loved ones.” 

Penn stock fell over 11% on Friday to $11.77. 

Ezra Amacher

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