Star Entertainment Risks Going Bust, Putting Thousands of Jobs on the Line
Star Entertainment Group, a big name in Australia’s casino and hotel business, stands on the brink of going broke. With just $79 million in the bank and growing problems, including fewer customers and over $100 million in fines from regulators, the company might run out of money in a month and a half.
Brisbane’s $3.6B Queen’s Wharf Faces Closure Amid Star’s Possible Collapse
The group’s money troubles put at risk its main casinos in Brisbane, Sydney, and the Gold Coast, along with the jobs of its 9,000 workers. Financial experts, like Angus Hewitt from Morningstar, say that without quick help, the company might not make it past February 2025, reported Daily Mail.
Star’s new $3.6 billion Queen’s Wharf project in Brisbane once seen as a crown jewel, shows the company’s problems. The area, which started running in August 2024 after many delays, might shut down. About 3,000 people work there, and Bruce Mathieson, who owns the most shares, thinks the company could go broke or have to sell soon.
The financial problems could be as big as when Virgin Australia went under in 2020 making it one of the biggest company failures in Australia in recent years.
Queensland Premier David Crisafulli has promised affected workers that their well-being stays a top concern but has said no to financial help for the company. He stressed the need to keep business and fun activities going in the area, no matter what happens to Star Entertainment, and slammed the company for not keeping its word about retail, food, and hotel spaces.
In the same way, New South Wales Premier Chris Minns has turned down pleas for financial help, worried that any bailout would benefit Star’s Queensland instead of fixing bigger company problems.
Star Entertainment Faces Uncertain Future as Cash Reserves Dwindle and JPMorgan Pulls Out
Star’s cash reserves have dropped by 46% since September 2024, and the company is losing $70 million every three months. CEO Steve McCann knows things are bad saying he wants to make sure employees and the business can keep going. However, experts do not think the company can bounce back. Hewitt does not believe Star Entertainment can work its way out of the financial troubles.
At the beginning of January, JPMorgan sold its 5.09% stake in Star Entertainment Group, which further exacerbated the company’s situation.
This move showed less trust in the Australian casino company. Star Entertainment has been looked into for claims it broke anti-money laundering rules. The company also struggles with lower profits and cash flow troubles, which have pushed its stock price to all-time lows. Industry analysts think JPMorgan’s exit points to growing doubts about Star’s future.
Time is running out for Star Entertainment. It might have to sell what it owns or ask for help to manage its debt. This could change how casinos work in Australia affecting workers in nearby towns, and the whole gambling business.
