In a recent employee memo, Silver Club General Manager David Mustard told employees that although the business was still in negotiations with a buyer, there is a possibility that the buyer might fall through.
Mustard did not put any time frame on a potential closing, but said that as long as the buyer continues with negotiations the Silver Clubs will remain open.
The hotel and casino has been negotiating with this buyer, whose identity was not released, since August, Mustard said.
The business has been on the market since April 2007.
In response to worsening economic conditions, the Silver Club also laid off nine of its more than 200 employees last Wednesday and reduced work hours for many more.
When asked about further layoffs or reductions, Mustard said, "As business conditions warrant. If it gets worse you have to do more."
The business recently jumped over the first hurdle to its sale when it renegotiated its loan with what was formerly First National Bank of Nevada. The bank, where the Silver Club held its various loans, was taken over by the federal government in July and turned over to Mutual of Omaha Bank. Since then, the Silver Club has needed to sort out its loans for the potential buyer. That process was completed Thursday. Mustard said.
The next step, which will determine the future of the Silver Club employees, is the completion of a purchase agreement.
Mustard had no expected date for the completion of that document and did not disclose the details of the agreement's discussion.
Following the completion of the purchase agreement, the hotel and casino will have to jump over several more hurdles before it is in the clear, including approval of the transfer by the Nevada Gaming Commission as well as the State Gaming Control Board.
According to Frank Streshley, a senior financial analyst and spokesperson for the Nevada Gaming Control Board, the Silver Club has not filed a request for a name change on its gaming license.
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