Trump Taj Mahal casino to close after Labor Day

Discussion in 'NJ Shore Points' started by SSN101, Aug 4, 2016.

  1. SSN101

    SSN101 I am Al Lord

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    sad ...

    Trump Taj Mahal casino to close after Labor Day - Philadelphia Business Journal

    The owner of Trump Taj Mahal in Atlantic City said the casino will close after Labor Day, saying it is its duty to its shareholders while citing the nearly 5-week long strike by workers as a factor in the decision.

    Carl Icahn acquired the casino as it emerged from bankruptcy last year, and a battle between the 80-year-old activist investor and Taj Mahal's workers began almost immediately. GOP presidential candidate Donald Trump first opened the casino, which still bears his name, in 1990, only to bring it to bankruptcy court the following year.

    according to the Associated Press.

    Tony Rodio, the president and CEO of Tropicana Entertainment, said in a statement the ongoing strike contributed to the closure decision – a move that brought about scathing remarks from union leadership.

    “Currently the Taj is losing multi-millions a month, and now with this strike we see no path to profitability,” Rodio said in the statement. “Unfortunately, we’ve reached the point where we have will to have to close the Taj after Labor Day weekend and intend to send WARN notices to before this weekend.”

    Rodio points out Icahn Enterprises invested nearly $100 million into the casino, and it must consider the responsibilities it has to its shareholders.

    "... the Taj Board and the Icahn Enterprises Board have fiduciary duties to shareholders and our directors cannot just allow the Taj to continue burning through tens of millions of dollars when the union has single handedly blocked any path to profitability," Rodio said.

    But Local 54 leadership says if Icahn simply reached a deal with workers, he would have spared huge expenses.

    "The great deal-maker would rather burn the Trump Taj Mahal down just so he can control the ashes," said Bob McDevitt, Local 54 president, in a statement. "For a few million buck he could have had labor peace and a content workforce, but instead he'd rather slam the door shut on these long-term workers just to punish them and attempt to break their strike."

    "There was no element of trying to reach an agreement here on Icahn’s part; it was always 'my way or the highway' from the beginning with Icahn," McDevitt continued, calling the closure, "petty."

    his full statement here.)

    Despite the impending shutdown, the nearly 1,000 Taj Mahal workers plan to continue to rally outside the soon-to-be closed casino.

    "The strike is going to continue and the workers are going to hold the line," said Diana Hussein, a Local 54 spokeswoman.

    The picketing workers have been calling for better health and pension benefits from the casino, making their frustration with the casino owner known at his Manhattan offices, at the New Jersey State House in Trenton, and in round-the-clock demonstrations on the Atlantic City Boardwalk.

    "Even if the union accepted what we previously offered, which included the UniteHere healthcare plan we were led to believe they wanted, we would still be losing significant amounts each month, but at least there would be hope," Rodio said.

    Union officials told the Philadelphia Business Journal last week that it has not had formal discussions with Taj Mahal's owners since June 30 and the last offer made to the workers was one they rejected in mid-July.

    Last week, a 26-year veteran of the Taj Mahal told the Philadelphia Business Journalthat it is particularly disheartening that Icahn struck a deal with employees at the Tropicana casino, which he also owns, but not with him and his coworkers.

    “You can give to one of your properties, Tropicana, but you can’t give to Taj Mahal workers. That’s not right,” Chuck Baker, a 56-year-old relief cook, said.

    Four other casinos – Bally’s Atlantic City Hotel and Casino, Harrah’s Resort Atlantic City, Caesars Atlantic City Hotel and Casino, and the Tropicana Casino – came to terms with the union and avoided a strike.
     
  2. fiveomar

    fiveomar Well-Known Member

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    Yet another casualty of a greedy union shakedown.
     
  3. Jayfar

    Jayfar I'm very old®

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    Hard Rock in deal to buy Trump Taj Mahal | Philly.com
     
  4. Nytecat

    Nytecat Well-Known Member

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    Now if only Rainbow Café would buy the entire Trump Plaza. :D

    But on a more serious note, a full sized Hard Rock casino and hotel ignores the fact that the gambling and lodging market are badly oversaturated. If HRC's effort succeeds, it will mean the closure of another AC property.
     
    #4 Nytecat, Mar 2, 2017
    Last edited: Mar 2, 2017
  5. daninpa

    daninpa Cheesesteak GURU!

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    I know the the plural of anecdote is not data, but my bf and I have been going to AC at least once or twice a month since October and during the weekends the casinos are pretty mobbed, at least the ones we go to in the marina district (Borgata, Golden Nugget, Harrah's). We usually stay at Harrah's due to they're more apt to give weekend comps to us low rollers than Borgata or GN and last weekend we had to settle for a 2-bed room since everything king was booked (although they did have newly renovated kings available for $100 more, which we declined). Harrah's also has less gamblers on the floor but had a good amount. Borgata and GN on the other hand had brimming tables and slot machines. The clubs are always packed, especially with North Jersey/NY peeps.
     
  6. mixiboi

    mixiboi Philly Remixed

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    So I take it the Hard Rock AC will be renovated
     
  7. Nytecat

    Nytecat Well-Known Member

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    AC boosters have been calling for Trump Plaza's demolition for years. They may finally get their wish.

    Could Trump Plaza soon be razed?

    My own thinking had been to renovate one tower and part of the casino structure to serve as an ancillary to Boardwalk Hall. But if the whole thing comes down, I won't complain.

    A common narrative is that the marina casinos are thriving while the boardwalk properties are struggling. You'd think the beach and the boardwalk would have more allure to visitors. Maybe that tunnel route to the expressway gives the marina a huge advantage in convenience. Resorts is said to be in trouble even though they have decent crowds. Ballys and Caesar's have been rumored to close for years. That may be due more to the parent company's recent bankruptcy case than anything. If the casinos themselves are fundamentally sound, someone else will step in and take over.

    Individual casinos may be doing well but the overall numbers don't lie. ACs casino revenue is less than half of what it peaked at a decade ago. Increasing non-gambling income helps but can never replace the gambling dollars now spent by former guests in their home state.
     

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