Breaking: Jay-Z's 40/40 taken over by casino
Yesterday I was blogging about the issues at one club at the Palazzo and now there is breaking news about another: Jay-Z's 40/40 is going to close.
The club has been subject to numerous rumors since opening over last New Year's weekend. And although I have looked into some rumors, I have not reported any of them because no one was willing to go on the record.
But it's been obvious that the Palazzo has not maintained the Jay-Z fans it had less than a year ago when Buffet photographer Sarah Gerke shot Jay-Z announcing the club's opening (pictured) at the Venetian's pool.
Also, even the bouncers I spoke to at 40/40 said business was not what they expected. By the way, the reason I was there that night talking to bouncers was to investigate a report that the furniture at 40/40 had been removed. The furniture was still there, but that should give you an idea as to the stories floating around.
Anyway, this morning the news that 40/40 will close was buried in a press release with a very long title. Usually, the people who write press releases keep the titles pithy unless it is news of a corporate promotion. They never really expect to see a story about a vice president becoming an executive vice president ,and therefore the release is mostly written to stroke the ego of the promoted executive. Here is the full subject line:
"The Palazzo Las Vegas, 40/40 Club Reach Agreement Allowing Palazzo to Open New Race and Sports Book and Restaurant"
Did you catch it? That's right. The real subject is that the space occupied by 40/40 is being taken over by the Palazzo.
I've called 40/40's local publicist who referred me to the national publicist who I am trying to reach. I am also trying to find out the date 40/40 closes, and I have also reached out to Palazzo to find out if any part of the space will retain the 40/40 name. Good thing I gave Jay-Z a book about changes the last time I saw him.
(Photo by Sarah Gerke)
I think this is just the beginning. Business in Las Vegas has fallen off a cliff. I wouldn't be surprised to see one or two casinos close within the next year if business doesn't pick up soon.
Posted by: Don Simpson | August 27, 2008 at 01:18 PM
A case of "the House always wins"... of course that doesn't bode well for Lavo.
Posted by: Bobak | August 27, 2008 at 04:58 PM
I am directly in the middle of this close. Palazzo wanted to take over the space because they saw huge profits from 40/40. They offered 40/40 42 million to be exact for 50 percent' however after weeks of negotation, the full 40/40 was sold for a much larger amount. Jay z made 400 percent of his investment back. People do not understand that 40/40 is very successful and is continuing to grow internationally. Palazzo was embarassed to admit they bought out the 40/40 property for so many millions. I will not respond to emails. This is an annonymous tip.
Posted by: insider 123 | August 27, 2008 at 10:02 PM
I stayed at the Palazzo two weeks ago and we had dinner at 40/40. All I have to say is that the place was empty and nothing the other 40/40 clubs. We didn't even hear one hip-hop song. It was unreal. I would imagine that many establishments in Vegas are feeling the results of a messed up economy.
Posted by: Baby Girl | August 28, 2008 at 07:59 AM
This 40/40 location has been sold to the Palazzo brand. It did not "go out of business" becasue of a lack of revenue. As reported in the NY Times 3 weeks ago. This is old news.
Posted by: Rob | August 28, 2008 at 08:56 AM
I love J no matter what he does he always do it bigg!! He got so much doe what's 40/40 club goin to do? Another notch under da belt.. HA!
Posted by: J-Baby | August 28, 2008 at 09:08 AM
I STILL want to work there as a cocktail server. If I apply now, will I still have a position when it changes over?
Posted by: Tmlsuperspice | August 28, 2008 at 09:27 AM
I think the mob, just wanted there usual handout. And probably did not get it. So they had it close, By stopping business from coming inside of it. Mob still control Vegas
Posted by: David | August 28, 2008 at 09:34 AM
Will those already working there be able to keep there jobs?
Posted by: Tmlsuperspice | August 28, 2008 at 09:37 AM
Jay Z is so stuipd even his night club couldn't make it. He is a Pussy Cat Doll indeed. Maybe he will go back to the corner and spare us his bad nois-- err I mean hip hop slop.
Posted by: David Brown | August 28, 2008 at 10:39 AM
This can happen to anyone. Doesn't take away from Jay's new business sense. I still believe however that in order for anything to prosper it has to be ran by the person who loves it or starts it. I think Jay is so successful that he can't spend the time needed to make this spot hot long-term. It happens to the best of us. He will recover, if he hasn't already... Hard -knock life is still one of my favorites!
More here:
The Individual, Calm Hill,
www.calmhill.com/blog
Posted by: The Individual, Calm Hill | August 28, 2008 at 01:15 PM
Belly up my ass the 40/40 cost 20 mil to establish at the Palazzo and it sold for $40 million I call that a nice flip get yah facts right.
Posted by: hec1979 | August 28, 2008 at 06:49 PM
I was just at the 40/40 vegas Sat night. It was packed and the played hip hop all night... Had A ball!!!
Posted by: missinvegas | August 29, 2008 at 05:58 PM
I worked at 40/40 Club Las Vegas and it was frequently empty. The only time I made money was during big sporting events and occasionally on Saturdays during club night. I knew it was a matter of time that a change was going to occur. We all know Jay will be alright, hope he learned a lesson from this... don't associate your name with something that is not a reflection of you. Invest yes, but at the same time make sure its something that you want to be associated with. If your business partners are doing shady business what does that make you? Making a money is great, I believe you get a lot further and feel better with possess self pride and respect. You can't put a price on that. No one can take your self pride away, that's priceless. How much more money can they possibly make? Is it really wort stealing from your hard working employees? Having us work forteen hour days with no breaks no OT and treating people with NO RESPECT? Was it worth it ?
There were some real good people that worked there. We worked hard to get 40/40 ready for opening. The cocktail servers, bartenders, bussers helped moved furniture in, dusted, mopped, swept, stocked, you name it we did it! 40/40 would have NEVER have opened without us. I'm still owed money to this day and a substantial amount of other former employees as well. I can't imagine what it feels like to steal from your employees and reap the benefits of what your employes help build. That's a horrible way to live. What people remember most is not how much money you have but how you made them feel. You can't take your money with ya.
40/40 was managed horribly. It could have been a lot better then it was. It has great potential with the right promoting and management. Since the Palazzo has taken it over, in a couple of months it will be something great. Des treated a gang of people real shady and with upmost disrespect. Thats a tuff life to live.
Live and learn....
Posted by: Basian | August 30, 2008 at 10:59 AM
I was just at the club over the Labor Day weekend and it was too empty. Only one of the four bars had workers, the other areas were ghost towns. Too self-indulgent for a sports bar.
Anyone who thinks that a club that is losing millions per month is going to double in value is an idiot. Jay Z is a rap crap artists who has made his millions spitting messages of thuggery, criminal activity, and sexual exploits. All those rap crap hip hop flops will all go down--God has finally showed up to deliver them their just due for desttroying their own people and society as a whole.
Finally, THUGGIN' in dead, bury, and played out! Thank GOD!!!!!!!!!!!!!!!!!!
Posted by: Pearl Jr | August 31, 2008 at 01:45 PM
The club frequent did NOT play hip hop (bad move)
and it was one of the few clubs in las vegas that charged local ladies.
Im a HUGE J fan but as a local lady why pay to get in his club when
there are 10+ clubs I can get into for FREE and know theyre at least going
to play hip hop music.
Posted by: R Dub | September 01, 2008 at 10:08 PM
the 40/40 club closed on labor day. sunday night was the last party. music was good but there were 5 people in the house, 3 of which were fat prostitutes. we left and went to tao.
Posted by: jason | September 03, 2008 at 12:26 AM
I knew this club would not last long. I'm a big Jay-Z fan and through the club decor was bangin' and the food was good. The staff was professional too. The only problem is that there was no-one there on a Friday night and when I came back on Saturday night I could not get in becuase I was wearing a pair of Lugz shoes which the boucer claimed were boots. The undereducated bouncer told me..."Dem is boots" and would not let me in. Right then I knew the place was doomed. How could you be that picky about the dress code when no-one is even coming to the place. Plus I had a gwap to spend that night and I went and spent it elsewhere.
Posted by: ROB | September 06, 2008 at 02:58 PM
I agree with the employee. I too was an employee at the 40-40 in manhatten. talk about shady man desiree gonzalez is extremely shady. she stole from me too and she would threaten employees with "just remember we got ur social security #'s! " she has no class or professionalism about herself. she makes bad moves that at the end of the day reglect jay. he's a good dude n she is an idiot if she thinks she can't get cut off. ha if dame got cut off dame does she think she can't be replaced? u reap what u sow. I aint bitter I'm real. she made u work 14 hr days. if u were fired cause she didn't like u for having a back bone and sticking up for urself. she would fire u then run behind her bouncers lol. I would suck her teeth n pretend she was happy to see beyounce, hater! she is the reason the place aint popping. its a shame what really goes on behind closed doors. I bet if I started a website for former employees of the 40-40 all the truth would be exposed. all in time. jay is to smart to be stupid enough to keep that man looking beast on board. ur replacable baby!
Posted by: truth | September 22, 2008 at 06:19 PM