Flynt Bidding to Buy Bankrupt Gardena Casino

When the Eldorado Club in Gardena declared bankruptcy last year, club official Maggie Mundet sent out only two letters to people she thought might want to buy the card club. One was to famed pornographer Larry Flynt, the other to entertainer and game show guru Merv Griffin.

Griffin never responded. But two weeks later, Hustler magazine publisher Flynt was in touch, saying that he was thinking about expanding his empire.

Flynt, whose publishing firm is headquartered in Los Angeles, is now one of two bidders in federal bankruptcy court seeking to take over the casino in a town once known as the mecca of Southern California card clubs.

A bankruptcy judge heard from the bidders Wednesday but postponed final action until Dec. 3, giving Flynt, the preferred candidate, 30 days to inspect the property.

Residents have feared that if Flynt took over, the card club on Vermont Avenue would be populated with scantily attired or nude female employees.

But Alan Isaacman, one of Flynt’s attorneys, assured the City Council on Tuesday night that if Flynt took over, the employees would be fully clothed.

The Eldorado Club, which opened in 1968 but faced increased competition in later years from clubs in nearby Inglewood and Compton, filed for Chapter 11 bankruptcy in May 1996. It closed its doors four months later with only 17 card tables operating.

The club is an attractive purchase to investors seeking to gain a stake in legal gambling because the state has declared a moratorium on new card clubs until 2001.

But over the last few years gambling has not been the lucrative business many thought it would be. Authorities earlier this month shut down the Crystal Park Hotel and Casino in Compton and revoked its gaming license because auditors found that its owner tried to cover up a cash shortage. It had been open only a year.

Gardena, the first city in California to legalize draw poker, is eager to see the Eldorado Club sold because the city is losing thousands of dollars in gambling taxes. The club owes the city more than $1 million in back license fees.

Flynt is offering $1.92 million for the club. WF Investments Corp. of Century City, the other bidder, is offering $1.6 million. WF Investments also asked the court for a 30-day extension to come back with a stronger financial offer.

Alfred D. Moore, an attorney representing the city, said the shifting offers have been difficult to track.

U.S. Bankruptcy Court Judge Samuel L. Bufford set the next hearing for Dec. 3.