LCI to sell casino at 50 St James

London Clubs International, the troubled casino operator, has put its prestigious 50 St James Casino up for sale with a price tag of more than £50m.

The group completed a debt restructuring in the summer, but still has £320m of borrowings, which it has promised to reduce.

LCI admitted it wanted to release cash from the casino, but said it was looking at a number of options. Gaming sources said the business was being auctioned by Deutsche Bank, LCI's advisers.

Sol Kerzner, the founder of Sun City in South Africa, recently bought £30m of LCI's debt. He is understood to have met with LCI's senior directors in London last week.

The 50 St James Casino is valued at £55m in LCI's books. It owns five other casinos in London, two more in the UK and four abroad. It also manages the insolvent Aladdin casino complex in Las Vegas, which was recently placed in Chapter 11 bankruptcy.

LCI is also believed to be preparing to sell The Sportsman, a downmarket casino in London. The building's lease is about to expire and LCI has leased a new one, but needs money to fit out the casino.