Photo by Marino.
On September 29, 1985, the IRS filed a $2.1 million lien against Landmark for failing to pay payroll and withholding employee taxes for the previous six months. Two days later, Landmark filed for Chapter 11 bankruptcy to prevent the IRS from seizing assets to satisfy the lien. Landmark’s debts totaled $10.6 million, and its assets totaled $28.6 million.82 Morris assured that the hotel would “… continue to meet our financial obligations and we believe that this can be a positive step toward a great future for the Landmark.”83
Photo from Joel Rosales.
While struggling with financial reorganization, Landmark asked the court in January 1986 for permission to abandon contracts with seven different unions in its attempt to recover from bankruptcy. The plan included “an immediate 15 percent wage reduction; eliminating all scheduled future wage increases; eliminating the pension plan; substituting the Landmark’s own medical insurance and hospitalization plan for the union’s health and welfare plan; limiting paid vacations to two weeks per year; deleting two holidays (New Year’s Day and Veteran’s Day) and eliminating two floating holidays in lieu of those days.”84
Cuts would include reductions to Morris’ $145,000 per year salary and General Manager Kerry Kindig’s $80,000 per year salary. Landmark reported an estimated $6,500 per month in savings from the reductions, and the court concluded they would be sufficient to cover the hotel’s mortgage payments. Morris said if the plan was not approved, he “…would have to scrap reorganization plans, buy time to sell out, and lay off 700 to 800 people.”85 The unions feared that agreeing to such a proposal would endanger their non-Landmark workers due to a “most favored nations” contract clause. The clause provides that if the union extends favorable terms to any employer, it must extend those same terms to all the other employers with which it has contracts; there is no exception for bankruptcy. The court ruled in favor of the Landmark’s plan except for eliminating holidays.86
Photo by Marc Wagner.
One of the significant marketing devices implemented in 1986 was a hot air balloon featuring the Landmark tower. It participated in local air shows and the national balloon show in New Mexico. It was also operated in the Landmark parking lot on weekends, giving guests short rides for which they received a souvenir certificate. Captain Bob Smith was the balloon’s pilot. The balloon continued to operate until at least 1989.
In the fall of 1986, Landmark’s exterior was used as mobster Ray Luca’s “Lucky Star Hotel and Casino” in the television series Crime Story. Set in the early 1960s, the series follows the cat-and-mouse story of Luca and Chicago police Lieutenant Mike Torello. Bob Stupak’s Vegas World Hotel served as the interior of the “Lucky Star,” and Stupak himself guest starred in an episode. Landmark’s east casino entrance was used as the exterior of a bar in the first season episode, ‘The Kingdom of Money.’ VEGA$ creator Michael Mann served as Executive Producer of the series. 
On January 13, 1987, a fire was set below the showroom stage and contained to the showroom, though five workers were safely evacuated. It was believed to be arson and suspected to be caused by a disgruntled union worker.87 The fire was part of a series that had occurred over the previous two weeks at various Las Vegas hotels and was believed to have been set by the same arsonist. Another theory was that it was a copycat attempting to imitate a fire that had killed 96 people at the Dupont Plaza Hotel in Puerto Rico.88
Video by Mickey Finn.
Legendary comedy Dixieland performer Fred “Mickey” Finn brought his unique musical variety show to the Landmark for the final of many times he had played there over the years in June 1987. Titled “Tom Foolery,” the show was a two-and-a-half-hour spectacle of hilarious characters, outlandish costumes, and ragtime music. It received great reviews and was Landmark’s most popular act that year.
Lloyds Bank of London agreed to finance $20 million for a first deed of trust on the Landmark in December of 1987.89 This allowed Bill Morris to complete the required fire safety upgrades from the 1985 citation and pay off the remaining creditors involved in the Bell & Beckwith case.
In May 1988, Melinda Saxe, known as “The First Lady of Magic,” began a run at the Landmark. Her Follies Revue ’88 became a massive hit as it was family-friendly. It was so popular that it was extended through the summer. It featured a hula hoop act, a 12-year-old ventriloquist, a two-legged bunny chorus line, and comedian-singer Gordie Brown.90
Melinda became an illusionist at 16, though she started professionally as a dancer on the Strip and even performed in the Siegfried and Roy show.91 In 1984, she became the first female magician to appear on the Strip with a show at the Bourbon Street Hotel.92 She was honored by the Society of American Magicians in 1988.93
The show was picked up for a second run in 1989.94 This show featured a vanishing Volkswagen Beetle and a 16-year-old juggler named Anthony Gatto, who would go on to perform worldwide, including a spot in Cirque du Soleil’s “Kooza.” The show’s centerpiece was “Mystery of Malaquena,” where Melinda entered on horseback as dancers fought for her affection; she even made one levitate on the tip of a sword.95
