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Trump Entertainment Resorts Files For Bankruptcy

The Donald Trump-founded company adds to growing list of casinos closing in New Jersey.

Posted on September 9, 2014, at 9:48 a.m. ET

Trump Entertainment Resorts Inc. has announced it is filing for bankruptcy, Reuters reported.

Tom Mihalek / Reuters

The company, which operates the Trump Taj Mahal Casino Resort and the Trump Plaza Hotel and Casino (pictured) in Atlantic City, joins a growing list of New Jersey casino operators who have filed for bankruptcy.

An estimated 8,300 people are losing their jobs in Atlantic City following three casino closures in less than a month, Reuters reported.

Trump Plaza Hotel and Casino joins Revel and the Caesers Entertainment-operated Showboat in closing when it shuts its doors on Sept. 16. The Trump Taj Mahal is set to close on or shortly after Nov. 13, if the company fails to negotiate a deal with its largest union and reduce its expenses.

Trump Entertainment filed its bankruptcy petition in a Delaware court. It previously filed for bankruptcy in 2009, but reemerged the following year.

The casino industry in Atlantic City has experienced a rapid decline recently, with seven straight years of falling revenue, Bloomberg reported.

AP Photo/Wayne Parry

High labor costs, real estate taxes and the expansion of legalized gambling in Maryland, Pennsylvania, and New York have all contributed to a fall in profits.

New Jersey Gov. Chris Christie held a summit with local leaders to discuss Atlantic City's future.

The company was founded by Donald Trump (pictured), although he has little active role in managing the company, Bloomberg reported.

Olivier Douliery/Abaca Press / MCT

In a telephone interview yesterday, Trump said, "What happened to Atlantic City, there’s a lot of competition from a lot of other locations. It's happening all over."

Robert Griffin, the chief executive officer of Atlantic City-based Trump Entertainment, declined to comment when contacted by Bloomberg.

The company employs around 2,800 full-time employees and 1,800 seasonal employees, Reuters reported.