William Yung, the controversial president of Kentucky-based Columbia Sussex Corporation, resigned his post as CEO of subsidiary Tropicana Entertainment LLC, after the casino operation subsidiary filed for Chapter 11 bankruptcy protection.
Tropicana Entertainment, owner of the Tropicana in Las Vegas, lost its license to operate its flagship Tropicana Atlantic City property late last year. That property is under the management of a state-appointed trustee who is directing its sale. The denial of licensure stemmed from Yung’s policy of slashing costs through massive layoffs, which in the case of the Tropicana led to declining service and complaints of a dirty, neglected property.
Last month, Tropicana announced that Yung has stepped down as head of the Tropicana subsidiary, although he will remain as president of Columbia Sussex (which owns several other casino properties besides Tropicana), and will remain on the board of Tropicana Entertainment.
Yung will be replaced as CEO of Tropicana Entertainment by Scott Butera, the current president of the subsidiary who was a longtime executive in the Trump casino organization. (Butera was executive vice president of the former Trump Hotels & Casino Resorts when that company went through bankruptcy court three years ago, emerging as the newly formed Trump Entertainment.)
In addition to replacing Yung, the Tropicana subsidiary formed a new five-member board with a majority of outside directors. The new board includes former New Jersey Casino Control Commission Chairman Bradford Smith, merchant banker Thomas M. Benninger and former Metro-Goldwyn-Mayer CFO Michael Corrigan, in addition to Yung and Butera.