Although still performing poorly financially, Landmark continued using new marketing methods to gain local business. They partnered with Smith’s Food King grocery stores in 1989 to offer a buy-one-get-one buffet deal. This promotion was unique as it featured the Landmark as a cartoon character with a face and clothing.
Landmark also started offering a loyalty program: Wild Card. Under the tagline, “We’ll SPOIL YOU ROTTEN!” the program aimed to increase customer loyalty with local Las Vegans. The free membership granted you a card that could be used at the new gaming machines, in restaurants, during room bookings, at shows, at bars, etc.
Members gained points for winning money on gaming machines. Bonus points were awarded for booking a room, seeing a show, dining in the restaurants, etc. These bonus points could be redeemed for prizes such as home entertainment centers, show tickets, appliances, vacations, and more. Additionally, members could take their cards to several outside businesses that partnered with the program to receive discounts and other bonuses.
On January 2, 1990, Landmark filed for Chapter 7 bankruptcy after Morris’s gaming license lapsed when the resort fell $500,000 behind in taxes and penalties. The court appointed Richard Davis, a Las Vegas real estate executive and the owner of a funeral home, as trustee to operate the hotel at the request of Lloyds Bank, which held a $23.5 million first trustee deed after loaning Morris money to revamp the hotel, in an attempt to make it more attractive for a short sale. Landmark’s debt was estimated at over $48 million. It owed $42 million to creditors and $1.24 million in property, state, and gaming taxes.96 General Manager Forrest Woodward was optimistic, stating, “It needs a new owner and an influx of capital. We think with a new owner that is dedicated to expanding the property and giving it a new look, it can be a terrific opportunity.”97
Landmark announced that a buyer with an offer of $35.5 million had come forward in July.98 The potential buyers were David M. Droubay and Martin Heckmaster, two Denver businessmen. A bankruptcy hearing was scheduled for Monday, August 6th, when other offers were to be considered. Ralph Engelstad, owner of the Imperial Palace Hotel, owned second, third, and fourth mortgages on the property at a total of $6 million and was expected to make a bid. Cab company owner Charles Frias, who held a fifth deed of trust for $1.4 million, also was expected to bid.99 After a two-hour court hearing, no bids were made on the property. Droubay and Heckmaster failed to file the required deposit to make a bid. Engelstad and Frias sat quietly as the judge asked for offers. Bill Morris said, “Sometimes it comes down to good luck and bad luck. I had nothing but bad luck. Someone is going to come in and run the Landmark and look like a genius.”100
Within an hour of the hearing, Landmark began shutting down gaming operations. Agents from the Gaming Control Board arrived to oversee the shutdown and supervise the final counts as table games were closed individually.101 Slot machines continued to operate as guests were transferred to other hotels on Tuesday and Wednesday. About six hundred employees were laid off without receiving a final paycheck.102 The Landmark’s doors were closed on Wednesday, August 8,1990.103
