“These factors, coupled with the seasonal and capital-intensive nature of the debtors’ businesses, high debt load, significant labor costs and double-digit real estate tax increases, hindered the debtors’ ability to operate successfully and negatively impacted the debtors’ liquidity position.”Īs of the end of July, the company employed 2,800 people.
“Since emerging from their prior bankruptcy cases in 2010, the debtors continued to face significant challenges due to the prolonged economic downturn, increased competition from within the Atlantic City market and from neighboring states, and the lingering effects of Superstorm Sandy, all of which contributed to declining revenues,” the company wrote. It came out of bankruptcy with $350m in debt, and currently has more than $285m in debt. Trump Entertainment has struggled since the day it emerged from its last bankruptcy in 2010, having filed the year before. “Absent expense reductions, particularly concessions from their unions, the Debtors expect that the Taj Mahal will close on or shortly after 13 November, 2014 and that all operating units will be terminated between Novemand November 27, 2014,” the company wrote in its bankruptcy filing. The Guardian visits Atlantic City’s failing casinos.
