Carl Icahn: That’s enough, we’re closing Trump Taj Mahal

ntic City’s total number of casinos is to drop to seven, as it has been revealed that the Trump Taj Mahal Casino Hotel will close after Labor Day weekend in September, leading to approximately 3,000 job losses.

Tony Rodio, President and CEO of Tropicana Entertainment, which has been managing the casino through a subsidiary since March, at least partially blamed the closure on the strike by union workers that began in July.

The casino was set to close in December 2014, in a year where four other Atlantic City casinos closed, but remained open after Carl Icahn put up the $20m to take the Taj Mahal through bankruptcy proceedings and became its owner in February 2015, removing Republican presidential candidate Donald Trump’s 10% share in the business.

Rodio said: “Currently the Taj is losing multi-millions a month, and now with this strike, we see no path to profitability. It is one thing for a board to decide to invest tens of millions of dollars in a money-losing business when they have a turn-around plan.

“But, the Taj board and the Icahn Enterprises board have the fiduciary duties as 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.”

Icahn told The Associated Press he has lost nearly $100m on the Taj Mahal and said: "It was a bad bet. How much good money do you throw after bad?"

The strike came after several workers’ benefits were lost following the bankruptcy regarding health insurance and pension benefits.

Despite Icahn offering to reconvene with health insurance plans, this would not entitle workers to the same benefits that workers at the city’s seven other casinos are entitled to, and the Unite Here union rejected the offer.

Rodio said: “Even if the Union accepted what we previously offered, which included the Unite Here 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. Unfortunately, we’ve reached the point where we will have to close the Taj after Labor Day weekend and intend to send WARN notices before this weekend.”

Bob McDevitt, President of Unite Here Local 54, said: “How petty. I would never have thought Carl Icahn was so one-dimensional. The great deal-maker would rather burn the Trump Taj Mahal down just so he can control the ashes.

“For a few million bucks he could have had labour 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. It is the epitome of the playground bully, who picks up his ball and announces he is going home because nobody else would do it his way. It is truly a shame that such an unscrupulous person has control of billions of dollars.”

The casino’s year-to-date casino win as of the end of June is $17.3m, up 13%.