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Due to these financial mismatches, Trump decided to also change the name of his company to Trump Hotels and Casino Resorts to the current name, Trump Entertainment Resorts, in the hope that his brand image would not be completely damaged, without getting it completely.
How did he manage to recover? The latter became co-owner with Trump, holding much more power than the tycoon himself, who still managed to keep the company name.
During the years following , Trump was dedicated to getting rid of his casinos, not without some considerable sums of money for them, of course.
And so on. One point of clarification: Trump has never filed personal bankruptcy, only corporate bankruptcy related to some of his business interests.
Here is a look at the six Trump corporate bankruptcies. The details are a matter of public record and have been widely published by the news media and even discussed by the president himself.
One year later, in the summer of , it sought Chapter 11 bankruptcy protection because it was unable to generate enough gambling revenue to cover the massive costs of building the facility, particularly amid a recession.
Trump was forced to relinquish half of his ownership in the casino and sell off his yacht and his airline. The bondholders were awarded lower interest payments.
Its operations were said to have cannibalized the revenue of Trump's Plaza and Castle casinos. Our wish is that your experience here be filled with magic and enchantment," the resort staff promised at the time.
The casinos owned by Trump Hotels and Casino Resorts have been exposed to the rollercoaster financial track record of the company.
The company, in its various guises, has filed for Chapter 11 bankruptcy protection on four separate occasions. This has happened in , , , and It was the bankruptcy issues of that saw the company officially change its name from Trump Hotels and Casino Resorts to its current operating name of Trump Entertainment Resorts.
Unfortunately, this name change did not end the financial uncertainty surrounding the company and its number of projects.
Five months after opening, the name was changed to simply Trump Plaza, to avoid confusion with Harrah's Marina.
Although the World Wrestling Federation billed the events as being held at Trump Plaza, in reality Trump was only the sponsor of both events, which were held at the Atlantic City Boardwalk Hall.
Trump Plaza's revenues took a sharp decline in due to competition from its newly opened sister property, the Trump Taj Mahal. The East Tower opened in two phases, in October and February On May 24, , Trump Entertainment Resorts announced that a decision would be made within two months to either sell the casino or to renovate and expand it, possibly with a joint venture partner.
Meruelo planned to make significant investments in the property and rename it. On July 12, , it was reported that the Trump Plaza Hotel and Casino would close on September 16, , if a buyer was not found, putting an estimated 1, employees out of work.
In early August , Donald Trump filed a lawsuit requesting his name be removed from the facility, because it had fallen into disrepair, in violation of the licensing agreement for his name.
Trump Plaza closed permanently on September 16, The closure left approximately 1, employees out of work. Demolition is expected by February Trump Plaza had hotel rooms, and offered 5 different room styles for guests to choose from.
There were also several amenities provided to hotel guests, like a pool and a fitness center. Trump Plaza contained 86, square feet of gaming space, and featured all of the standard casino games.
Slot machines, video poker, blackjack, poker, craps, roulette, baccarat, and more could all be found at Trump Plaza. Trump Plaza had several dining options from which patrons to choose.
There were few shopping options for those wishing to shop at Trump Plaza. DJT explained: "Management believes that the ability to utilize these facilities enhances" its revenue.
The "management" here meant Trump himself, since he was the chairman. Business deals between a company and a major shareholder are common and can be totally legit.
These deals "need to be scrutinized very carefully" because they have "an inherent conflict of interest," said Ralph Walkling, a corporate governance professor, also at Drexel University.
This conflict has to be resolved before a transaction is approved, typically by removing the conflicted party from the decision-making process.