Trump Taj Mahal: The Next Casino to Close in Atlantic City?

Trump Taj Mahal: The Next Casino to Close in Atlantic City?
MIH83 / Pixabay

Is Trump Taj Mahal the next casino to close in Atlantic City? The owner of the casino indicated in its regulatory filing to the State Division of Gaming Enforcement that it was in trouble of running out of money to pay its bills and debts.

Given the financial situation of Trump Taj Mahal, many suggested that it could be the next casino that will join the list of those that closed its doors in Atlantic City.

Seth Klarman’s 2021 Letter: Baupost’s “Never-Ending” Hunt For Information

Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More

Trump Taj Mahal blames extremely cold weather

In its filing, Trump Taj Mahal Associates L.L.C., the owner of the casino stated that its cash flow had been “adversely affected” by several factors such as “extremely cold winter weather and frequent snowstorms in the Mid-Atlantic United States, increased utility costs, intense competition, and current economic conditions.”

The company also indicated that its bottom line was also negatively impacted by a steady decline in spending by visitors.

Trump Taj Mahal cannot guarantee revenue increases

The owner of Trump Taj Mahal said they needed to borrow money or restructure its business if will not be able to achieve a significant increase in revenue and improvement in operating results.

“The company will have difficulty funding its operations and meeting its payment obligations, unless the company is able to obtain additional sources of liquidity or restructure its business and/or its indebtedness and other obligations,” according to the filing.

In addition, the company emphasized that there is no guarantee that it will achieve revenue increases or that it will succeed in obtaining additional sources of liquidity.

Furthermore, Trump Taj Mahal indicated that it will not be able to pay its third-quarter taxes given its financial condition. The company said its tax payments would be suspended “indefinitely.”

The employees of Trump Taj Mahal could receive WARN notices regarding the potential closing of the casino, according to a tweet sent by Roger Gross, the publisher of Global Gaming Business magazine. The Worker Adjustment and Retraining Notification (WARN) Act require employers to notify workers 60 days in advance about closings and mass layoffs.

Three casinos already closed in Atlantic City including Showboat, Revel, and The Atlantic Club. The Trump Plaza is scheduled to close on September 16.

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article Olstein All Cap Value Fund Q2 Letter To Investors
Next article Starbucks To Open Express Stores, Tasting Rooms

No posts to display