NEWS BRIEF The Trump Taj Mahal Casino in Atlantic City, New Jersey, will close after Labor Day weekend following one month of union strikes, the Press of Atlantic City reports.
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The casino is owned by investor Carl Icahn, who took control of it when it emerged from bankruptcy in February.
“But, the Taj board and the Icahn Enterprises board have the fiduciary duties as shareholders and our directors can not just allow the Taj to continue burning through tens of millions of dollars when the Union has single-handedly blocked any path to profitability”.
The Trump Taj Mahal is about to become the fifth Atlantic City casino to close its doors for good in 3 years. This resulted in the longest casino workers’ strike to have taken place since casino gambling was first introduced in Atlantic City.
Icahn has been financing the hotel since it filed for bankruptcy in 2014, reportedly losing $100 million on the property in the past 18 months.
Rodio said the ongoing Unite Here Local 54 strike played a role in making the decision. The UNITE HERE Local 54 President and Mr. Icahn have been exchanging sharp words since the latter bought Trump Taj Mahal.
The casino was declared to be the “eighth wonder of the world” by the current Republican presidential nominee when he opened it in 1990, at a cost of $1 billion.
“How petty”, McDevitt said. Union workers have promised to continue their strike outside the casino as quitting now would not benefit anyone.
The closure of the Taj Mahal will be a further blow to the former gaming capital, which has seen its ratable base plummet by half since out-of-state competition started cutting into its share of the market in the last decade.
On Wednesday, Tony Rodio, president of the Taj’s management firm Tropicana Entertainment, announced that the Taj Mahal would close “after Labor Day weekend”.
If the Taj does shutter this fall, it will follow the closings of the Atlantic Club, Showboat, Trump Plaza and Revel in 2014, which rocked Atlantic City’s casino industry.
It has been the target of a strike by Atlantic City’s main casino workers’ union since July 1. Remaining operators in Atlantic City include Caesars Entertainment Corp. and MGM Resorts International, as well as privately-owned casinos.
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For more than a year before the picket lines went up, the relationship between union workers and the billionaire was marked by marches and protests in Atlantic City and NY, where Icahn Enterprises has its headquarters.
