Rank to make a decision on loss-making Grosvenor Casino Reading Central

The venue has made losses for the last six years, with a combined loss of £2.3m

British operator Rank has launched a consultation over the future of its Grosvenor Casino Reading Central venue, with it generating an operating loss of £500,000 in the last financial year, and with further losses of £400,000 predicted over the next year.

A Grosvenor Casinos spokeswoman said: “We can confirm that we have taken the difficult decision to begin a consultation process to explore options for the long-term sustainability of Grosvenor Casino Reading South. As part of good business practice, we regularly review the performance and long-term health of our venues to ensure we are making responsible decisions for our colleagues, customers and the wider business.

“We are working closely with our team members in Reading South to ensure we keep them updated and informed as we go through this process.”

Employees were issued with a letter on July 20 detailing the proposal by Rank Group, owner of Grosvenor Casinos, to close its Queens Street location. It outlined that revenue at the Queen Street site was £630,000 below budget (19 per cent) and that the venue has made losses for the last six years, with a combined loss of £2.3m. Operating costs have increased by two per cent in the last eight years, the letter added, while revenue has fallen by 20 per cent.

The letter read: “These financial challenges have resulted in a position where continued operation of the venue may no longer be commercially sustainable. “Therefore, having carefully considered all available options, the company is proposing the permanent closure of Reading Central.

“The proposal has not been made lightly. However, the company believes closure may be necessary to mitigate ongoing financial losses, protect the overall health of the wider business and enable resources and investment to be focused on those areas with stronger commercial prospects and long-term growth potential.”

Concerning the redundancy process, Rank said it would “seek feedback on the proposal, ways to avoid or reduce redundancies, and how to mitigate the impact on affected colleagues.”

Grosvenor operates two other casinos in the area.