We were standing in anticipation for the massive day/nightclub and restaurant plans at Palms when we were whiplashed by a statement from the TAO Group and Red Rock Resorts.
The joint statement said that TAO Group and Red Rock Resorts, Inc. have jointly agreed to end the agreements to open a day club/nightclub and restaurant at the Palms Casino Resort.
The day club/nightclub and restaurant were scheduled to open sometime around the first quarter of 2019.
That’s all they had to say; the rest of the agreement are “confidential,” they said.
There’s nothing very meaningful to the statement. There was only a shock, but Las Vegas knows it means saying goodbye to the plans of bringing Vandal, the artsy restaurant-cum-nightclub that has been huge in New York City.
Palms had been proclaiming the deal with TAO Group and had already made a substantial investment for the new entertainment space when the TAO Group and Red Rock Resorts pulled back.
The effort, the anticipation…for naught?
Palms seems unscathed by the divorce and is set to move forward with the 29,000-square foot day/nightclub without TAO Group. The show must go on despite Palms already having a nightclub, the Apex Social Club.
Of course, there are theories to the parting.
One theory said TAO got cold feet realizing they will be playing a major part in Palm’s $620 million “From Dust to Gold” makeover.
Others believe there is more drama to it than what meets the eye. Earlier, TAO Group sold a majority interest for about $180 million to Madison Square Garden, which has gained a higher profile in Vegas for the development of The Sphere at The Venetian.
There have also been rumors about TAO’s Marquee nightclub at the Cosmopolitan and the TAO Beach at the Venetian. News of which were stalled until TAO has released its statement about the Palms pull out.
Maybe they didn’t want to be just a third party and were not very thrilled with TAO’s deals with Palms. Who knows?