Operator News

US – MGM pledges $1m for employee emergency fund and donates half a million pounds of food

By Phil - 29 March 2020

MGM Resorts has announced an array of initiatives intended to support those impacted economically by the coronavirus (COVID-19) pandemic, including a $1m crisis and disaster relief pledge into an employee emergency grant fund and donating the equivalent of 400,000 meals across the United States.

“As we confront extraordinary events and an unprecedented global pandemic crisis, we know that this is an extremely challenging and uncertain time for many of our employees, their families, friends and neighbours and we are committed to help those in need,” said Bill Hornbuckle, Acting CEO and President of MGM Resorts International. “We have done a number of things to help our colleagues, including significantly expanding eligibility coverage for the MGM Employee Emergency Grant Fund. MGM Resorts International is donating $1 million towards disaster relief to offer additional support to employees impacted by the crisis and who may be experiencing hardships.”

Mr. Hornbuckle added: “We’ve also stepped up our commitment to communities around the country. Over the past week, MGM has donated the equivalent of 400,000 meals through local food banks to alleviate food insecurity in the United States.”

In November, MGM Resorts launched its bold vision for social impact and sustainability, Focused on What Matters, a companywide program focused on a goal-centered approach to making positive impacts in its communities. Company goals by 2025 include 5 million meals to be donated through its Feeding Forward program and surpassing 1 million volunteer hours within the community.

“In battling the current global crisis, at MGM Resorts we intend to embrace humanity, exemplify inclusion and exhibit compassion. Our commitment to our employees and the communities in which we operate, conduct business and serve our customers, remains steadfast,” said Jyoti Chopra, Senior Vice President, Chief Diversity & Sustainability Officer for MGM Resorts International.

MGM said it was well placed to cope with pandemic with the MGM Grand and Mandalay Bay transactions has netted a pre-tax gain of US$1.5 billion.

“While this will undoubtedly have a significant negative effect on our business in the near term, we are well-positioned to emerge from the current crisis in light of our strong liquidity position and valuable asset portfolio. With the continued execution of the MGM 2020 plan, as well as the implementation of aggressive cost savings initiatives, we believe the Company will be able to manage its expenses while navigating this unprecedented event. We are currently making very difficult decisions but believe these will be in the best interest of the company long term.”

“The company believes its strong liquidity position, valuable unencumbered assets and aggressive cost reduction initiatives will enable it to fund its current obligations for the foreseeable future,” MGM said. “While the company is unable to predict when the properties will re-open, the Company continues to believe that it will be able to weather this downturn and ultimately rebound from the impacts of the current crisis.”