By Michelle Seiler-Tucker Special for USDR
Trump Plaza Hotel and Casino, is considered a first-class experience, located at the center of Atlantic City’s celebrated boardwalk, will close its gold plated doors indefinitely. The establishment has officially filed proceedings to lay off more than 1,000 workers in prelude to the shut down in September. The Trump Plaza will join a graveyard of other Atlantic City resorts that have fallen on financial hardships after suffering damage from a sequence of damaging storms and lost revenue to competition in several nearby states that have recently legalized gambling.
This cessation comes a year after the casino was almost unloaded into a company in California’s arms who attempted to purchase it for just $20 million last year. But Carl Icahn, the mortgage holder, decided he would not allow the sale to go forward because he felt the price was too low.Trump Plaza, which opened in May 1984, currently employs 1,009 people. The casino has been a poor performer, earning less and less from gamblers. During the first six months of 2014, Trump Plaza’s casino winnings fell by more than 27 percent from the same period a year prior. In tally to Trump Plaza, two other huge hotels and casinos are expected to close in the near future, Revel and The Showboat Casino Hotel will be closing in August of this year. Atlantic City’s casino revenue has fallen by nearly 50 percent since 2006.
Trump endured multiple bankruptcies as head of Trump Entertainment Resorts Inc., and he and his name will forever be associated with Atlantic City even if his share of the casinos is now only an estimated 10 percent. In a statement concerning the matter, Trump shared, “I’m very sad for Atlantic City. I spent many years there, as you know. But I have not been involved for many years. I have nothing to do with Trump Plaza’s closing. Different people own it.”
Trump and Atlantic City grew together. The mogul was at the height of his popularity after the Taj Mahal debuted and into the mid-1990s. But the following years were less kind as the Trump casino company would go in and out of bankruptcy court in 1991, 1992, 2004, and 2009, and Trump’s ownership stake and influence would diminish with each trip. Many blamed the cost of the Taj Mahal for its financial problems. I blame the decision to maintain ownership as opposed to selling the entities as the main issues. In my award winning and best selling book, Sell Your Business For More Than Its Worth, I describe the importance of selling one’s business at the height of its success to ensure the largest return from the initial investment.
As a true beacon on wisdom in the business industry, Donald Trump knows when to hold ‘em and when to fold ‘em.