How Casino Bankruptcies Are Affecting Donald Trump
Job Losses and Casino Bankruptcies Do Not Concern Donald Trump
On August 31, the Showboat Hotel and Casino in Atlantic City closed its doors as did the Revel Hotel some days prior. This resulted in the loss of approximately 5,000 jobs which included dealers, waitresses, bartenders, security guards and other personnel in the casino. The Trump Plaza Hotel in Atlantic City is also poised for closure in late September, which will bring the number of laid off workers to 6,000.
Donald Trump has a lengthy history in Atlantic City and this includes him leaving his business deals in the area before the collapse of the local economy.
It was during the early 1980s when Trump first bought properties on the Atlantic City boardwalk after having received approval from the state's gaming and control board. This resulted in his forming a partnership with Holiday Inn and building Trump Plaza. The deal that Trump negotiated allowed him to collect 50% of all profits without assuming any liability for casino losses throughout the casino's first five years.
In 1984, the Trump Plaza opened its doors in Atlantic City and not long after this, a local hotel owned by the Hilton Corporation was bought by Trump and dubbed Trump's Castle. Trump was later sued for opening a competing business right next to the one he already owned. After some time, Trump bought out Harrah's interest in the Trump Plaza Hotel.
In 1991, the Trump Taj Majal opened up and not long after this, Trump begin facing bankruptcies. It was in this same year that the hotel filed to receive protection and Trump had to go through the process of restructuring. 49% of property shares wound up going to bond holders. Trump's hotel company underwent the restructuring process for Chapter 11 bankruptcy in 2004. The CEO position was eventually resigned by Trump who lost the majority control over his corporation. Trump's position as chairman of the board was retained until 2009, when after the board refused to sell the company, Trump resigned.