LAS VEGAS (CelebrityAccess) — Seven months after opening, the high profile Kaos dayclub and nightclub at The Palms in Las Vegas is shutting down.
The 73,000-square-foot club, which was the centerpiece of a high profile $679 million renovation at The Palms, featured a pool for daytime parties, as well as unique artwork such as 60-foot-tall bronze sculpture by Hirst called Demon with Bowl.
The club, which opened in April with high profile performances by DJs such as Kaskade, Cardi B, Skrillex and Travis Scott, also launched an ambitious $60 million residency with the masked DJ Marshmello which ended unceremoniously in September.
In a statement to the Las Vegas Journal review, a spokesman for the Red Rocks Resorts said: “While Palms has experienced exceptional growth across both the gaming and nongaming segments of the business, the expense side of the business has been challenging to date, due in large part to the entertainment and fixed cost structure associated with KAOS.”
The decision to close the club comes just days after club operator Red Rock Resorts announced a net loss of of $26.8 million for their third fiscal quarter, attributing the shortfall to the “termination of certain artist performance agreements and employment arrangements at the Palms.”
Red Rocks Resorts Chief Executive Officer Frank Fertitta made similar statements during a conference call with investors on Tuesday, noting that club customers weren’t spending enough money to cover costs, and may have discouraged other guests from patronizing the resort.
“It doesn’t appear that the market has grown enough for the amount of supply,” Fertitta told investors during the call. “The cost of entertainment is excessively high and we just made the decision to focus where the fish are.”
Earlier this week, Red Rocks Resorts reported a third quarter net loss of $26.8 million, which the company attributed primarily to “charges relating to the termination of certain artist performance agreements and employment arrangements at the Palms, as well as higher depreciation and amortization relating to the Palms redevelopment project.”