News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 7 years ago
Rediff.com  » Business » Trump's Taj goes bust

Trump's Taj goes bust

By Yoshita Singh
August 04, 2016 15:32 IST
Get Rediff News in your Inbox:

Taj Mahal Casino

IMAGE: A sign marks the Trump Taj Mahal Hotel and Casino May 8, 2004 in Atlantic City, New Jersey. Photograph: Craig Allen/Getty Images

The casino, the last of the Atlantic City casinos bearing Donald Trump's name, will close in September.

The Trump Taj Mahal casino, once among the centrepieces of billionaire Donald Trump's casino empire, in Atlantic City near New York will shut down next month amid a worker strike, leaving nearly 3,000 people jobless.

The Republican Presidential nominee had not been involved in the management of the casino for years, but his name remains on the facade of the boardwalk property, which is now owned by Trump's friend and fellow billionaire Carl Icahn, The Wall Street Journal reported.

The casino, the last of the Atlantic City casinos bearing Trump's name, will close around the first week of September.

The closure of the casino, that was opened in 1990 by Trump, will cost about 3,000 workers their jobs, and reduce the number of casinos in Atlantic City to seven.

Taj Mahal Casino

IMAGE: A Trump Castle gambling chips box, Trump Casino coffee cup, Trump Taj Mahal key chain, and Trump Castle gaming token are displayed at The Trump Museum near the Republican National Convention in Cleveland, July 19, 2016. Photograph: Lucas Jackson/Reuters

The job losses will be in addition to 8,000 workers, who lost their jobs when four Atlantic City casinos closed in 2014.

In 2014, Trump had sued to get his name off the casino and others in Atlantic City that later closed, 'fretting their tattered state would harm his brand,' the report said.

The labour strife at the casino was stirred by the last in a series of bankruptcies for Trump's former gambling empire.

In a statement, Tony Rodio, president and chief executive of Tropicana Entertainment Inc, which is also controlled by Icahn, blamed striking workers for the demise of the Taj.

The Trump Taj Mahal Casino

IMAGE: The Trump Taj Mahal Casino illuminated at dusk. Photograph: Mark Makela/Reuters

'Our directors cannot just allow the Taj to continue burning through tens of millions of dollars when the union has single-handedly blocked any path to profitability,' Rodio was quoted as saying in the WSJ report.

Union chief Bob McDevitt criticised Icahn likened the billionaire investor to a 'playground bully.'

'The great deal-maker would rather burn the Trump Taj Mahal down just so he can control the ashes,' McDevitt said.

'For a few million bucks, he could have had labour peace and a content workforce, but instead he'd rather slam the door shut on these long-term workers just to punish them and attempt to break their strike,' the union leader added.

A patron plays the slots at the Trump Taj Mahal casino hotel on March 30, 2016 in Atlantic City, New Jersey

IMAGE: A patron plays the slots at the Trump Taj Mahal casino, March 30, 2016. Photograph: John Moore/Getty Images

Trump Taj Mahal workers are among the lowest paid in Atlantic City, getting an average wage of less than $12 an hour.

They also lost their health-care benefits as well as other labour contract protections in bankruptcy.

Democratic Presidential nominee Hillary Clinton has attacked Trump's business record in Atlantic City.

In a campaign stop last month in the New Jersey town, Clinton had hit Trump for 'multiple bankruptcies, stiffing contractors and spurring hundreds of job losses' during his time owning casinos in Atlantic City.

A patron rides the escalator at the Trump Taj Mahal casino hotel on March 30, 2016 in Atlantic City, New Jersey.

IMAGE: A patron rides the escalator at the Trump Taj Mahal casino, March 30, 2016. Photograph: John Moore/Getty Images

'How can anybody lose money running a casino?' Clinton asked an audience in Detroit last month.

'Trump economics is a recipe for lower wages, fewer jobs, more debt. He could bankrupt America like he's bankrupted his companies,' Clinton said.

A CNN report said Trump had filed four business bankruptcies in the last 30 years, all of which surrounded his casino holdings in Atlantic City.

Get Rediff News in your Inbox:
Yoshita Singh in New York
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!