Thursday, September 11, 2014

Trouble Times As Trump Entertainment Files For Bankruptcy

A sign marks the Trump Taj Mahal Hotel and Casino in Atlantic City.

Trump Entertainment Resorts, which operates two Atlantic City casinos—Trump Taj Mahal Casino Resort and the soon-to-be-closed Trump Plaza Hotel and Casino—on Tuesday filed for Chapter 11 bankruptcy protection.

The filing is another blow for casino workers in Atlantic City, whose casinos have faced growing competition from new rivals in the northeastern United States.

Around 8,300 people are losing jobs with three casinos closing in less than a month—Showboat, a Caesars Entertainment property and Revelrecently closed while Trump Plaza Hotel and Casino is due to close on Sept. 16.

The company, founded by Donald Trump, listed assets and liabilities of between $100 million and $500 million in its bankruptcy petition in a Delaware court. Trump is no longer associated with the company and the real estate mogul and reality TV star has filed a lawsuit demanding that his name be stripped from the casinos. Donald and Ivanka Trump resigned from the board of Trump Entertainment in February 2009.

"Mr. Trump brilliantly left Atlantic City more than 7 years ago and has not been back," The Trump Organization Executive Vice President Michael Cohen said in a statement. "Mr. Trump has absolutely nothing to do with Trump Entertainment Resorts, Inc. and is currently in a lawsuit seeking to have his name taken off the buildings."

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