Trump Entertainment Resorts Inc. has filed for bankruptcy, and the decision could force the closure of the Trump Taj Mahal Casino Resort in Atlantic City.
Donald Trump founded the company, but no longer controls it. He sued Trump Entertainment in August to have his name removed altogether because the company had left the casino operation in "an utter state of disrepair," according to the lawsuit.
"I want it off both of them," Trump told the Associated Press on Aug. 5. "I've been away from Atlantic City for many years. People think we operate (the company), and we don't. It's not us. It's not me."
Trump Entertainment operates the Taj Mahal and Trump Plaza Hotel and Casino. The latter will close its doors on Sept. 16 and the company has already cut about 8,300 jobs, according to Reuters.
The 2000-room Taj Mahal will likely close on or shortly after Nov. 13 unless the casino can find a buyer. Trump Entertainment also would need to reduce expenses and negotiate a deal with its biggest union, according to Reuters.
Both are unlikely scenarios, according to David Tawil, president of Maglan Capital, a New-York based hedge fund.
"The Trump bankruptcy is another step in the never-ending spiral for Atlantic City," Tawil told Reuters. The resort company previously filed for bankruptcy in 2004 and 2009, when Trump gave up his chairmanship to the company. "What's most curious is the velocity at which the casino industry has fallen."
Trump Entertainment listed its assets and liabilities between $100 and $500 million in its bankruptcy petition filed in a Delaware court. It also owes $286 million to funds owned by billionaire investor Carl Icahn.
Three of 12 Atlantic City casinos have shut down this year due to the increased competition in neighboring states. More than 40 rival casinos have opened in New York, Pennsylvania, Delaware and Maryland.
Revel closed on Sept. 2, two years after it opened, and 2,800 people lost their jobs, according to UPI. The closure came two days after the Showboat Casino Hotel closed. The Atlantic Club shut down in January.
