Trump Taj Mahal closes after years of losses

[Suppressed]

http://www.usatoday.com/story/money/2016/10/10/trump-taj-mahal-closes-after-years-losses/91845566/

Trump Taj Mahal closes after years of losses
Roger Yu, USA TODAY | 11:16 a.m. EDT October 10, 2016

    Trump Taj Mahal casino has closed, becoming the fifth Atlantic City casino to go out of business since 2014. Just before its official closure Monday morning, workers protested outside. (Oct. 10)

The Trump Taj Mahal, an iconic casino hotel on the Atlantic City boardwalk, ceased operations Monday after hemorrhaging losses for years and negotiations with employees' union broke down, according to its owner, billionaire investor Carl Icahn.

The shutdown, which leaves 3,000 employees out of work, was widely expected after its management announced the planned closure in August. Beset by labor strife and the decline of Atlantic City as a resort and gaming destination, the hotel lost "almost $350 million over just a few short years," Icahn said in a statement Monday.

About 1,000 employees, including cooks, bartenders, housekeepers and cocktail servers, went on strike on July 1, seeking health care and pension benefits. Icahn said his last offer, which included medical benefits, was rejected and keeping it open would have required additional investments and result in losses in "excess of $100 million over the next year."

The union, Unite Here Local 54, says many workers at the hotel "have seen only 80 cents per hour in total raises over the last twelve years" while the cost of living in Atlantic City has risen over 25% during the period.

"Workers are trying to reenter the middle-class after Icahn used the bankruptcy court to strip them of pay and benefits worth more than one-third of their total compensation," the union said in a statement that was released last month. "Housekeepers, servers and other casino workers at the Taj Mahal earn on average less than $12 and hour."

...

Meanwhile, Tony Rodio, CEO of Tropicana Entertainment Inc., which manages the hotel for Icahn Enterprises, said in August that Icahn has lost about $100 million in trying to run the Taj Mahal after he acquired it from bankruptcy proceedings in February. Tropicana Entertainment is controlled by Icahn Enterprises.

The Trump Taj Mahal opened in 1990 after heavy debt financing and years of legal and financial maneuvers by its then-owner Donald Trump, the Republican presidential nominee. When it opened, it was one of the largest casinos in the world, with more than 100,000 square feet of gaming space, and billed itself as "the eighth wonder of the world."

But the fancy billing belied numerous financial troubles it faced over the years, including multiple bankruptcy filings by its owners. In 2009, Trump Entertainment Resorts underwent a round of bankruptcy restructuring, in which Donald Trump lost control and the hotel operator company was sold to investment firm Avenue Capital.

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Excerpt. More at http://www.usatoday.com/story/money/2016/10/10/trump-taj-mahal-closes-after-years-losses/91845566/

[jmyrlefuller]

Talk about the worst possible timing.

[geronl]

I guess strip shows and porn conventions can't save it

[Oceander]

I guess strip shows and porn conventions can't save it

He ran out of guests whose <kitty> he could grab. 

[Oceander]

This too is going to be used against him, particularly to build the narrative that he doesn't car about the little guy and puts profits before people. 

[geronl]

This too is going to be used against him, particularly to build the narrative that he doesn't car about the little guy and puts profits before people.

nah, he doesn't own it anymore. They did pay him to use the name TRUMP... which seems to be one of the ways he actually earns cash.

[INVAR]

But… but Trump's the GENIUS businessman whose 'art of the deal' will save us and our economy!

This has to be more sabotage from NeverTrump Republicans.

No wonder Trump has vowed revenge upon them.

[LateForLunch]

But… but Trump's the GENIUS businessman whose 'art of the deal' will save us and our economy!

This has to be more sabotage from NeverTrump Republicans.

No wonder Trump has vowed revenge upon them.

Maybe you missed the post above yours before the gleeful hate-post. Trump doesn't own it any more. Try to stay grounded in reality.

[Longmire]

Try to stay grounded in reality.

Mission impossible for most of these folks unfortunately...

[Oceander]

nah, he doesn't own it anymore. They did pay him to use the name TRUMP... which seems to be one of the ways he actually earns cash.

That doesn't matter; optics matters.  It will be hung around his neck. 

[Oceander]

Mission impossible for most of these folks unfortunately...

/snicker

[jmyrlefuller]

Maybe you missed the post above yours before the gleeful hate-post. Trump doesn't own it any more. Try to stay grounded in reality.

So what? It still has his name on it. He tried to pawn off his failed casino on someone else, make it still look like his, and it still failed.

You can't have it both ways, you know.

[LateForLunch]

So what? It still has his name on it. He tried to pawn off his failed casino on someone else, make it still look like his, and it still failed.

You can't have it both ways, you know.

I'm not trying to have anything any way but real. So you would criticize someone for selling a failed casino in a declining market (Chris Christie call your office)? That seems like common business sense to me. The term "pawn off" is pejorative. He sold it. So what. That was apparently smart or he'd have a lot of losses to account for. I suppose he is also responsible for the decline of the gambling industry in New Jersey?

The part about optics is true. I'm not arguing that. In fact, that is probably the greater point. But that's also the doing of the media, which tends to accentuate Trump's self-promotion (bragging) about his business experience only when there is something negative to report in that regard. That is how hardball is played. But it is a little disturbing how enthusiastically some of our posters enable that process by jumping in and joining in the effort.

To be fair, I was never a Trump supporter until he got the nom, but the Trump supporters I have read on this forum seem fairly reasonable. So Longmire's et al criticism of them as being "impossible to bring reality to" seems harsh.

Let's hope that Trump steps aside or is removed. It's probably too late because some states have already allowed voting in the presidential election (which brings up another reason I am opposed to early voting).

[dfwgator]

Who would go to Atlantic City anyway?

[geronl]

If Trump still controlled it, it would have been gone years ago

[Longmire]

/snicker

A case in point..

[Fishrrman]

df wrote above:
"Who would go to Atlantic City anyway?"

That's the essence of it.

I doubt many (any?) of the remaining Atlantic City casino/hotels are doing well of late.
They're all probably struggling.

Trump wasn't personally involved with this one anymore -- says it's now owned by another company ("Avenue Capital"?).

If there's blame for recent mismanagement, the onus should be on them.
Not Trump...