Trump Plaza To Close In September As Atlantic City Implosion Claims Fourth Casino

Tyler Durden's picture




 

The Atlantic City casino industry implosion continues. Following the second, and final, bankruptcy of AC's "state of the art" Revel Casino a month ago, as well as the shuttering of Atlantic Club hotel Casino and the Showboat hotel casino, the grim corporate reaper has come for one of the most prominent boardwalk casinos of all: Trump Plaza.

The casino which opened in 1984 as a JV between Donald Trump and Harrah's AC, was for a long time the centerpiece of Donald Trump's one-time Atlantic City empire, which however promptly escalated into a series of sequential bankruptcies, chipping away at Trump's reputation and business model, as one after another of Trump's properties sought Chapter 11 protection.

The final punch came in February 2013 when Trump Plaza was sold to a California company for $20 million - the cheapest ever transaction for an Atlantic City casino, and a fitting testament to the death of this one-time east coast gambling mecca. It was here, however, where a very bored Carl Icahn, once again spread his wrinkled activist wings when in April 2013, as senior lender for the mortgage, Icahn declined to approve the sale for the proposed price and the deal was put on hold.

Unfortunately for Icahn, this is one he may have let go, because as the Philadelphia Inquirer reports, Trump Plaza has decided not to bother with continuing the sale process and will instead shutter permanently. "Trump Plaza Hotel & Casino will shut its doors for good in mid-September, according to state officials who were briefed Friday by lawyers for the casino."

"I believe Sept. 16 is the targeted closure date that we were told," said Assemblyman Vince Mazzeo (D., Atlantic). Mazzeo said he and State Sen. Jim Whelan (D., Atlantic) received a phone call late Friday afternoon from a Trump Plaza lawyer. Atlantic County officials also were briefed, he said.

 

Mazzeo said the attorney told him that Trump Plaza management plans to make a formal announcement and issue 60-day layoff notices to about 1,600 employees Monday.

 

"This is another blow to the casino industry here," Mazzeo said. "With mid-September the timing of the closing, it will have a devastating impact on the local economy."

The news will hardly come as a great surprise: there has been speculation for more than a year that Trump Plaza was on the verge of closing. "Like the Atlantic Club, Trump Plaza is one of the city's smallest and oldest gambling halls - it opened May 26, 1984 - and had difficulty competing with the bigger casinos in town and in nearby states, including Pennsylvania."

But while the creditors will be angry they have other sources of income; one group of people even more furious and with zero recourse are the unions. Bob McDevitt, president of Unite Here Local 54, the union that represents most casino workers, led a Boardwalk rally Wednesday to protest Showboat's planned closing. McDevitt, who labeled Showboat's closing "a criminal act" by Caesars Entertainment since the property was still profitable, could not be reached late Friday to comment on the latest casino to fall.

Meanwhile, the city is slowly but surely realizing that its business model is dead.

Whelan, a former Atlantic City mayor, expressed his displeasure Friday night. "I go from depressed and sad to being angry," he said. "When these casinos close, people lose their jobs and their careers. It's a very sad situation."

 

Employees at Trump Plaza had not been notified Friday of the planned closure, but slot attendant Stan Jelesnianski, who said he has worked there for 21 years, said employees had been worried "for a long time."

 

"Business has been slow," he said.

 

According to May 2014 monthly revenues from the New Jersey Division of Gaming Enforcement, the latest monthly data available, Trump Plaza ranked last among the 11 casinos in total revenue, making $5.2 million. Of that total, it generated about $4.6 million from slots, down 19.8 percent from May 2013. And it took in $660,666 from table games, a decrease of 45.6 percent from a year ago.

 

Its year-to-date total casino revenue of $21.9 million was down 26.7 percent from the same period a year ago.

 

Charles Pinkett, a Boardwalk rolling-chair operator, said the casino has seemed to be on life support for a while. "The people have been talking about how there's no room service," he said.

The only good news perhaps is that yet another icon of the Trump "empire" - built entirely on other people's money and junk bonds - is being dismantled. After this, there is just one more left...

Mark and Alice Aronson, dining outside, said they were surprised and saddened to hear another casino was on the way out. Alice Aronson, a local therapist, said she had clients from Showboat who were dealing with the pain of the likely layoffs.

 

"It's a shame," she said. "This is a good place. I heard Donald Trump is not involved anymore. I thought maybe he'd fight for it. It seems, one by one, they're not taking care of their employees."

 

Trump Plaza's closing would leave one Trump-brand casino in Atlantic City - the Trump Taj Mahal, between Resorts Casino Atlantic City and the soon-to-close Showboat.

We give the Trump Taj 6-9 months before it too joins its peers in the liquidation docket, and the name Trump will no longer appear on the boardwalk for the first time in over three decades. In the meantime, those curious to track the demolition of the Atlantic City gaming empire in real time, can do so at the New Jersey WARN Notice website.

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 07/12/2014 - 10:46 | 4949759 All_Your_Base
All_Your_Base's picture

"You're fired!"

Sat, 07/12/2014 - 10:48 | 4949764 RevRex
RevRex's picture

RECOVERY SUMMER FIVE!

Sat, 07/12/2014 - 10:49 | 4949766 CH1
CH1's picture

Green shoots!!

Sat, 07/12/2014 - 10:53 | 4949773 john39
john39's picture

Good riddance.  But, the nyse is the casino that cleary most needs to burn.

Sat, 07/12/2014 - 10:56 | 4949778 TeamDepends
TeamDepends's picture

How many does it hold?  Maybe we could store all the illegal invaders in the Trump FEMA Casino.

Sat, 07/12/2014 - 10:59 | 4949780 nmewn
nmewn's picture

Apparently there is some vacant housing in Detroit as well? ;-)

Brian Terry's Brother Kent: 3 Greyhound Buses with Unmarked Escort in Detroit

http://www.breitbart.com/InstaBlog/2014/07/11/Slain-Border-Agent-s-Brother-Kent-Terry-3-Greyhound-Buses-with-unmarked-escort-in-Detroit

Sat, 07/12/2014 - 11:03 | 4949788 Berspankme
Berspankme's picture

The illegal invaders will not be happy. Detroit is a downgrade from el salvador

Sat, 07/12/2014 - 11:06 | 4949794 nmewn
nmewn's picture

It is a puzzling move, I thought Detroit was deep blue already ;-)

Sat, 07/12/2014 - 11:25 | 4949823 SafelyGraze
SafelyGraze's picture

where will the retirees go now for their bus tours?

next thing you know, the ordinary sports fan will stop shelling out hundreds of bucks to go see professional athletes perform sports entertainments

Sat, 07/12/2014 - 12:13 | 4949911 Liberal
Liberal's picture

Well, people need money to gamble so that they'll end up needing more money to cover their losses. We liberals have a proposal: Allow Casinos to accept EBTs. And if people lose that, too, give them more EBTs. We see it as a win-win.

Sat, 07/12/2014 - 12:27 | 4949938 chumbawamba
chumbawamba's picture

No, let's get Donald Trump out here again to explain to us why the current guy running the show is an idiot and how he's going to fix everything (though he's not really running for office, he just whores himself out as a political lackey to settle debts).

I am Chumbawamba.

Sat, 07/12/2014 - 12:38 | 4949955 holmes
holmes's picture

Propping up Obama by comparing him to Trump. Oh, how the mighty have fallen.

Sat, 07/12/2014 - 13:00 | 4950003 Pure Evil
Pure Evil's picture

Oh, I don't know, pretty apropos. Donald Trump has his failing empire and Obama currently reigns over the failing US empire.

One just happens to be much larger and in debt than the other one.

I think we could survive the Trump empire collapsing, but how many will come out alive when the US empire finally collapses?

Sat, 07/12/2014 - 13:18 | 4950063 Mr Pink
Mr Pink's picture

You're right. We have survived every previous Trump empire collapse.

Trump might be the king of corporate welfare

Sat, 07/12/2014 - 13:54 | 4950165 ebworthen
ebworthen's picture

Not even Trump can stop this recovery!

Sat, 07/12/2014 - 15:35 | 4950509 TeethVillage88s
TeethVillage88s's picture

JP Morgan runs the EBT Program for the Federal dicks.

So, it is a win for JP Morgan.

Sat, 07/12/2014 - 12:20 | 4949923 booboo
booboo's picture

Sports has become just another PC experiment In the pussification. ESPNpms and their talking vagina's have pretty much ruined the games of men. Redskins, there is another example of PC madness.

Sat, 07/12/2014 - 22:54 | 4951451 jeff montanye
jeff montanye's picture

"talking vagina's have pretty much ruined the games of men."

not me.  what are the rules and how do you keep score?

also why the apostrophe?

Mon, 07/14/2014 - 03:13 | 4954670 SF beatnik
SF beatnik's picture

Real men play sports. They don't watch other men play sports.

Real men date women. They don't watch women on TV.

Mon, 07/14/2014 - 03:39 | 4954684 Tall Tom
Tall Tom's picture

Real men do not watch porn stars perform. Real men perform.

 

Lose the pornography...

Sat, 07/12/2014 - 11:38 | 4949849 ugmug
ugmug's picture

Stockpile all the illegal immigrants in the shuttered casinos. They'll wind up there eventually once they get their first benefit card.

Sat, 07/12/2014 - 11:12 | 4949804 TeamDepends
TeamDepends's picture

They are also being sent to Chicago.  Perhaps the elites, as this melt-down accellerates, are giving liberals the middle-finger salute saying, "here ya go bleeding heart commies, YOU deal with 'em!".  Interesting times, these.http://www.nationalreview.com/corner/382564/federal-government-sends-hun...

Sat, 07/12/2014 - 11:45 | 4949861 Herd Redirectio...
Herd Redirection Committee's picture

The Elites are thinking: "Hey, Nicaragua and Honduras would look nice...  With less of these kids on the streets..."

Sat, 07/12/2014 - 12:42 | 4949963 juangrande
juangrande's picture

Have you been to Nicaragua????

Mon, 07/14/2014 - 03:17 | 4954672 SF beatnik
SF beatnik's picture

Last I checked the map, Nicaragua didn't even have a road linking the east coast to the west coast.

Fellow worker from those parts refers to it as Niggeragua 

Sat, 07/12/2014 - 11:01 | 4949783 kliguy38
kliguy38's picture

I guess there weren't enough .001% to make a go at his POS casino. ... That scumbag will be very visible when this house of cards comes apart

Sat, 07/12/2014 - 14:13 | 4950219 Never One Roach
Never One Roach's picture

I lived in Phili when Atlantic City “opened” and remember the free buses from downtown to the casinos. Little old men and ladies would be standing at the bus stop literally holding paper bags with their savings to go gamble. I took the free bus there a few times holding a pair of shorts in the bag instead of money because the bus driver would not let you on the bus unless it looked like you were going down there to gamble.

 

It was quite a sight. Tawdry, pathetic, and perhaps prophetic.

Sat, 07/12/2014 - 17:38 | 4950789 Tinky
Tinky's picture

Ah, so you are the genesis of "he lost his shorts". I had always wondered...

Sat, 07/12/2014 - 19:15 | 4951000 RECISION
RECISION's picture

Wow...

Thinks must be REALLY bad in Merika,

if they can't afford to just piss money away any more...

/s

Sat, 07/12/2014 - 23:04 | 4951470 boattrash
boattrash's picture

Yeah, recovery, expendable income: I'll see your can of green beans, AND raise you a can of corn.

Mon, 07/14/2014 - 03:25 | 4954676 SF beatnik
SF beatnik's picture

Back in the fifties, casinos were considered cool (like smoking cigarettes, accent then placed on the last syllable).

Recent pass thru Reno revealed to me how this form of entertainment has become declasse.  

Casinos are now the haven of ordinary po folk and lowlifes... rather like coach class on the airlines that has replaced the 'hound.

No more comped buffet meals -  now about $30 for din din at El Dorado.  This is the end.

Sat, 07/12/2014 - 16:49 | 4950673 duo
duo's picture

Casinos generate wealth HOW?

Sat, 07/12/2014 - 15:18 | 4950441 lakecity55
lakecity55's picture

Welcome to Camp Trump. Work Makes Us Free.

Sat, 07/12/2014 - 11:01 | 4949784 Berspankme
Berspankme's picture

But if they are laid off how will the employees buy stawks?

Sat, 07/12/2014 - 11:31 | 4949836 ugmug
ugmug's picture

It ain't over until the fat 'Yellen' sings......

Sat, 07/12/2014 - 13:56 | 4950167 Freddie
Freddie's picture

How is that Hope and Chains thing working out NJ?

Sat, 07/12/2014 - 11:41 | 4949850 Bokkenrijder
Bokkenrijder's picture

I guess no new hairpiece for Donni this year...

Sat, 07/12/2014 - 10:47 | 4949762 freewolf7
freewolf7's picture

"Maybe this will wake us up.", I keep thinking.

Sat, 07/12/2014 - 10:50 | 4949770 CH1
CH1's picture

It'll wake up a few people in Atlantic City.

Sat, 07/12/2014 - 10:56 | 4949777 RaceToTheBottom
RaceToTheBottom's picture

"Bob McDevitt, president of Unite Here Local 54, the union that represents most casino workers, led a Boardwalk rally Wednesday to protest Showboat's planned closing. "

Protest business losses!!!!

Go solutions...!?

 

Sat, 07/12/2014 - 11:34 | 4949843 SokPOTUS
SokPOTUS's picture

Protest the closing?   It's one thing to be a dumbass, it's another to be one publicly.

Sat, 07/12/2014 - 11:57 | 4949872 Pure Evil
Pure Evil's picture

Just another distraction. Gotta direct the anger of the union employees against the casinos. Wouldn't want that anger to be directed against the union bosses that were raking in exorbitant salaries and casino bribes while actually doing very little to help their union members, except of course, collecting union dues from underpaid members.

Sat, 07/12/2014 - 12:10 | 4949890 mjcOH1
mjcOH1's picture

"Gotta direct the anger of the union employees against the casinos. Wouldn't want that anger to be directed against the union bosses that were raking in exorbitant salaries and casino bribes while actually doing very little to help their union members, except of course, collecting union dues from underpaid members."

 

Apparently not 'underpaid' enough to keep the business afloat.   Another union victory for the working man.  

Sat, 07/12/2014 - 13:04 | 4950021 Pure Evil
Pure Evil's picture

Compared to the salaries and benefits of the union bosses and the management of the casinos, yes I would say the average union member was underpaid.

What do you think they were making dealing blackjack and running the roulette tables, six figures?

Sat, 07/12/2014 - 13:30 | 4950091 Coletrane
Coletrane's picture

they're dealing cards.....not performing neurosurgery.....it's not exactly skilled labor

 

 

if they want to EARN more $$$ there is always the option of educating ones self. I understand, though, that it is an unpopular idea in today's WHAT ABOUT ME culture.

Sat, 07/12/2014 - 17:04 | 4950718 Dull Care
Dull Care's picture

As a dealer, I make 50k working 32 hours a week at a small casino in the middle of nowhere with 8 tables. In a bigger market my income would be higher.Dealers in more prestigious resorts obviously make more. We're not doing badly at all compared to many other professions. If these dealers are unionized that's just laughable. We have a dream job.

Sat, 07/12/2014 - 11:15 | 4949763 AssFire
AssFire's picture

While reading the account of Varus' defeat in "Fifteen decisive battles of the world: from Marathon to Waterloo" (page 71)

http://manybooks.net/titles/creasyedetext03tfdbt10.html 

(free- written by Sir Edward Shepherd Creasy and published in 1851 before political correctness censors)

 I came across this paragraph that I felt could be accurate describing our debased culture with a few changes I made here:

 Vast however, and admirably organized as the fabric of American power appeared on the frontiers and in the provinces, there was rottenness at the core. In America's unceasing hostilities with foreign foes, and, still more, in her long series of desolating financial wars, the free middle classes of the United States had almost wholly disappeared. Above the position which they had occupied, an oligarchy of wealth had reared itself: beneath that position a degraded mass of poverty and misery was fermenting. EBT recipients, the chance sweepings of every liberated country, shoals of Africans, Mexicans, Arabs, and others, made up the bulk of the population of America. The foulest profligacy of manners was general in all ranks. In universal weariness of revolution and civil war, and in consciousness of being too debased for self-government, the nation had submitted itself to the absolute authority of Obama. Adulation was now the chief function the media, House, Senate: and the gifts of genius and accomplishments of art were devoted to the elaboration of eloquently false panegyrics upon the President and his favorite courtiers. With bitter indignation must the Russian chieftain have beheld all this, and contrasted with it the rough worth of his own countrymen;--their bravery, their fidelity to their word, their manly independence of spirit their love of their national free institutions, and their loathing of every pollution and meanness. Above all, he must have thought of the domestic virtues that hallowed a Russian home; of the respect there shown to the heterosexual, non-deviants, and of the pure affection by which that respect was repaid. His soul must have burned within him at the contemplation of such a race yielding to these debased Americans.

 Now the original:

 Vast however, and admirably organized as the fabric of Roman power appeared on the frontiers and in the provinces, there was rottenness at the core. In Rome's unceasing hostilities with foreign foes, and, still more, in her long series of desolating civil wars, the free middle classes of Italy had almost wholly disappeared. Above the position which they had occupied, an oligarchy of wealth had reared itself: beneath that position a degraded mass of poverty and misery was fermenting. Slaves, the chance sweepings of every conquered country, shoals of Africans, Sardinians, Asiatics, Illyrians, and others, made up the bulk of the population of the Italian peninsula. The foulest profligacy of manners was general in all ranks. In universal weariness of revolution and civil war, and in consciousness of being too debased for self-government, the nation had submitted itself to the absolute authority of Augustus. Adulation was now the chief function the senate: and the gifts of genius and accomplishments of art were devoted to the elaboration of eloquently false panegyrics upon the prince and his favourite courtiers. With bitter indignation must the German chieftain have beheld all this, and contrasted with it the rough worth of his own countrymen;--their bravery, their fidelity to their word, their manly independence of spirit their love of their national free institutions, and their loathing of every pollution and meanness. Above all, he must have thought of the domestic virtues that hallowed a German home; of the respect there shown to the female character, and of the pure affection by which that respect was repaid. His soul must have burned within him at the contemplation of such a race yielding to these debased Italians.

Sat, 07/12/2014 - 11:25 | 4949825 COSMOS
COSMOS's picture

"Slaves, the chance sweepings of every conquered country, shoals of Africans, Sardinians, Asiatics, Illyrians, and others, made up the bulk of the population of the Italian peninsula"

LOL dont tell the Italians what they are really mostly descended from hahahaha

Sat, 07/12/2014 - 13:38 | 4950122 dizzyfingers
Sat, 07/12/2014 - 10:50 | 4949768 Salsipuedes
Salsipuedes's picture

As one of the great icons of the phony economy, I say "adios puta".

Do NOT follow this link or you will be banned from the site!