More bad news out of Atlantic City this week with another casino closing on the horizon.
Trump Entertainment, which owns two Atlantic City casinos, has filed for bankruptcy. The company owns Trump Plaza and the Taj Mahal, which collectively employ more than 3,000 full and part-time employees.
The Plaza had already planned to close next week and, if major savings can’t be found, the Taj Mahal will shut down Nov. 13. If that happens, it would mean the city that started out the year with 12 casinos could end it with just seven.
“You know the phrase, moving desk chairs around on the Titanic?” said Keith Foley, a professional pessimist as senior vice President at Moody’s Investors Service.
“It’s a big-picture story. It’s about real estate,” he said Tuesday. “It’s about location and, with all the maneuvering that’s going on right now with everyone trying to figure out how to cut their losses or maximize their recovery, Atlantic City still has the same problem. It has a lot of good casinos in areas customers typically come from.”
Those are newer casinos in New York and Pennsylvania eating away at the profits of the city that once had a monopoly on gaming in the Northeast.
Even Donald Trump, who currently owns only 10 percent of the Trump Entertainment, recently sued to get his name taken off the failing casinos, saying they’re tarnishing his reputation.