Donald Trump Is Not Worried About Casino Job Losses
English: View of Trump Taj Mahal and Chairman Tower from the Boardwalk. (Photo credit: Wikipedia)
Donald Trump Not to be Concerned About Casino Bankruptcies or Job Losses
Atlantic City's Showboat Hotel and Casino shuttered its doors on August 31st, and the Revel Hotel did the same a few days later. A total of 5,000 job losses resulted, including those of bartenders, waitresses, dealers, security guards and all other casino personnel. Atlantic City's Trump Plaza Hotel is also slated for closure later in September, bringing the total job loss to over 6,000 laid-off workers.
Donald Trump has a history with Atlantic City, including leaving his business dealings in the area before its economic collapse.
Trump first bought Atlantic City boardwalk properties during the early 1980s, after he gained approval from the state gaming control board. He first established a partnership with Holiday Inn and built the Trump Plaza as a result. Trump negotiated a deal that gave him 50% the profits and didn't hold him liable for any casino losses during the first five years of operation.
The Trump Plaza opened in Atlantic City in 1984, and soon after Trump purchased the Hilton Corporation's local hotel and renamed it Trump's Castle. He later faced a lawsuit for opening up a competing property next to the one he already owned. Trump later purchased Harrah's interest in the Trump Plaza Hotel.
The Trump Taj Mahal opened up in 1991, and soon after Trump started facing bankruptcies. The hotel filed for protection the same year, and Trump went through a financial restructuring process. The bond holders ended up owning a 49% share of the property. Trump's hotel company also went through a later Chapter 11 bankruptcy restructuring process in 2004. Trump eventually resigned his CEO position and lost the majority of the control over his own corporation. He did retain his position as chairman of the board until 2009, when he resigned after the board's refusal to sell the company.