Donald Trump is widely known for a business career that has been marked by a series of corporate bankruptcies. Despite his personal wealth, Trump has used legal bankruptcy protections multiple times to restructure debts and keep his businesses afloat. The fact that he has become US President on two occasions with this record is staggering enough. However, if we then throw in his latest destruction of the world economy by using tariffs to somehow ‘Make America Great Again’, it just becomes obscene. Then we completely run out of adjectives when we discover how he calculated these tariffs. Imagine how thick and/or manipulative one would have to be to vote for him. It is beyond mere words.
The Six Corporate Bankruptcies
Trump has never personally declared bankruptcy, but six of his companies have filed for Chapter 11 bankruptcy protection in the United States. Chapter 11 allows businesses to continue operating while restructuring their debts. These bankruptcies primarily affected his casino and hotel businesses in Atlantic City and New York.
1. Trump Taj Mahal (1991)
The Trump Taj Mahal, a lavish casino in Atlantic City, was financed largely through junk bonds, resulting in high-interest debt. Within a year of opening, the casino filed for bankruptcy due to an inability to meet its financial obligations. Trump ceded 50% of his ownership to lenders in exchange for lower interest rates and a longer repayment schedule.
2. Trump Plaza Hotel (1992)
A year after the Taj Mahal bankruptcy, Trump Plaza Hotel in New York also filed for Chapter 11. Trump personally guaranteed some of its debt, leading him to sell assets, including his airline and yacht, to cover losses. He also gave up a 49% stake in the hotel to lenders.
3. Trump Castle (1992)
Trump Castle, another Atlantic City casino, struggled due to mounting debts. In 1992, the property went through bankruptcy restructuring, reducing Trump’s control in exchange for financial relief.
4. Trump Hotels and Casino Resorts (2004)
By the early 2000s, Trump’s gaming empire faced growing financial difficulties. His publicly traded company, Trump Hotels and Casino Resorts, filed for bankruptcy with $1.8 billion in debt. Trump reduced his ownership stake and agreed to a debt restructuring plan.
5. Trump Entertainment Resorts (2009)
The 2008 financial crisis exacerbated the struggles of Trump Entertainment Resorts, the successor to his previous casino company. In 2009, the business filed for bankruptcy again, and Trump eventually stepped down as chairman. His stake was drastically reduced, though his name remained on the properties.
6. Trump Plaza (2014)
Trump Plaza, one of his Atlantic City casinos, was the last of his businesses to go bankrupt. Though he had already distanced himself from its operations, the casino officially shut down in 2014, marking the end of Trump’s presence in the city’s gambling industry.
Trump’s View on Bankruptcy
Trump has often defended his use of bankruptcy laws as a strategic business move. He has argued that restructuring debt is a common practice among large corporations and that he has simply used legal means to protect his businesses. However, critics argue that these bankruptcies reflect poor management and risky financial decisions.
The Impact on His Business Reputation
While Trump remains a billionaire, his multiple bankruptcies have raised serious questions about his business acumen. Supporters claim he is a savvy operator who understands how to navigate financial hardships, while detractors see his bankruptcies for what they are: financial recklessness.
Those Tariffs
James Surowiecki explains how Trump calculated them and how ‘extraordinary nonsense’ they are.
Stan Laurel’s Donald Trump Impression:
