Stock dived last week as the Australian casino operator, Crown, continued in its efforts to make massive costs across the group. Reports emerged of James Packer planning to sell hundreds of millions of dollars worth of luxury items such as yachts, private jets and even homes.
Shares dipped more than $1.50 on Wednesday when it was claimed that Crown was planning a massive sale of millions of luxury items that were bought to entertain VIP Chinese gamblers.
These Chinese players continue to avoid Crown's Australian casinos following the arrest of 14 Crown employees in China late last year.
One of the homes which may go under the hammer is the Packer family's Hunter Village in Ellerston, NSW. Crown Resorts owns half of the estate after it was sold to the company by Packer for $60 million. The idea was to use the home as a base for high-roller Chinese players.
Also to be sold are three private jets used to bring Chinese players to casinos at a cost of $100 million.
Crowth Perth's $40 million, 40 m long superyacht, Infinity, which costs around $1 million each year to run, will be put up for sale.
Crown Plans to Stop Sponsorships
The Weekend Australian reported that Crown is set to sell its flagship golf courses, and will back out of sponsorships of Australia's top rugby league teams and sporting stars.
Plans are underway for Crown to stop sponsoring the Melbourne Storm and the South Sydney rugby teams.
New Chairman Urged to "Cut the Fat"
Following the departure of Crown's chief executive, Rowen Craigie, John Alexander has stepped in to take over the responsibilities.
Packer has instructed Alexander to undertake a broad review of the company's costs, and a report will be delivered by the end of June.
According to Packer, Alexander has been urged to "cut the fat" in the Crown gaming empire, with more focus to be placed on local Australian gambling operations and downsizing global operations.
Packer told the Australian in an interview: "I certainly will be urging him [Alexander] to make the hard calls required."
Around 200 employees have already been told that they will be made redundant.