Monday, July 29, 1996 | 11:59 a.m.
Two top Stratosphere Corp. officials, including President David Wirshing, resigned today as the struggling company attempts to reverse its faltering course.
Wirshing, 46, and Stu Platt, vice president of operations, left just three months after the resort opened with expectations of immediate success. But meager casino play and a variety of mishaps have plagued the Stratosphere since then.
In a bid to develop strategies that will draw more gamblers to the property, Stratosphere Chairman and Chief Executive Officer Lyle Berman named marketing specialist Richard Schuetz as interim president.
Schuetz is expected to oversee redesign of the casino floor to counter a cramped appearance and to institute a stronger marketing effort featuring advertising that highlights gaming products instead of focusing on the resort's 1,149-foot tower.
He's also expected to push for completion of additional hotel rooms and retail shops as quickly as possible. Analysts said the 1,000 rooms now scheduled to open in January would add $50 million in casino revenue and $83 million in total revenue to the resort.
On Wall Street, where the stock has plummeted from $14 a share earlier this year, Stratosphere common was trading at $3.06 a share, up 19 cents, in mid-morning trading today.
Wirshing's departure from his $400,000-per-year job comes amid financial troubles at the Stratosphere, which opened with much fanfare in April.
Stratosphere Chairman Bob Stupak stepped down last week and sluggish quarterly earnings led one Wall Street analyst to suggest bankruptcy was in the offing for the hotel-casino.
Berman angrily denied that claim and began a concerted effort to counter Stratosphere's precipitous fall from grace. It's likely additional executive changes will be announced over the next several days.
"Berman is sending a clear-cut message to Wall Street," said David Ehlers of Las Vegas Investment Advisers. "He's going to make it very, very clear to everyone who's involved in this project that there was never any thought of letting this slip away."
Wirshing came to Stratosphere from Fitzgeralds Gaming Corp., where he was president and chief operating officer. During his seven years there, he played a key role in opening the company's casino in Tunica, Miss.
Wirshing had a long career with Harrah's before joining Fitzgeralds. His three-year contract with Stratosphere, which ran through Sept. 26, 1997, called for him to receive his base salary for a year if he left before then.
Platt, former general manager of the Alexis Park Resort, held positions with Harrah's, Resorts International, Del Webb and Bally's during more than 20 years in the hospitality business.
Like Wirshing, Schuetz has more than 25 years of experience in the gaming industry and has held senior executive positions in operations and marketing in Reno-Lake Tahoe, Atlantic City, the emerging gaming markets and on the Strip.
He studied for a Ph.D. in economics at the University of Utah and is a marketing columnist for Casino Executive Magazine. For the latest issue, Schuetz wrote an article saying strong research is a critical part of developing an effective marketing program.
Schuetz was most recently president of Schuetz Inc., a Minneapolis-based firm specializing in marketing, positioning and communications. Before starting his own company, Schuetz was vice president of corporate marketing for Grand Casinos Inc., which owns 42 percent of Stratosphere stock, from 1991 to 1995.
"I have every confidence in Richard Schuetz working closely with me in implementing the new strategies and programs at Stratosphere," Berman said.
"Richard brings a wealth of experience in both marketing and operations to Stratosphere. We believe the strategies and programs we have outlined to enhance our property will yield increases in our gaming revenues."
Additionally, Stratosphere announced that its investor relations and corporate communications functions will be consolidated with those of Grand Casinos under the direction of Grand Casinos Executive Vice President Tom Brosig.
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