Donald Trump’s Bankruptcies
For many, Donald Trump is the ultimate symbol of American capitalism. He is also an integral fragment of American pop culture with his highly successful television reality series “The Apprentice” and his tagline “You’re fired!”
Most Trump fans, however, don’t know about his company’s three bankruptcy filings over the past fifteen years along with his two amazing comebacks. However, while Trump has publicly estimated his proper wealth in the billions, his critics have claimed a distinguished smaller derive worth. They further charge that his business success is nothing more than shameless self-promotion along with marketing smoke and mirrors.
In truth, Donald Trump is not only a master of self-promotion; he’s also a master of self-protection. It was Trump’s business corporation that declared bankruptcy three times while his personal fortune remained comparatively unscathed.
Trump before the Bankruptcies
In 1982 Donald Trump made his first appearance on Forbes Magazine’s 82 Wealthiest Families list. At that time, Donald’s personal fortune was closely tied with his family’s wealth with only a few exceptions. The Trump family fortune began with father Fred Trump, a major builder of decidedly unglamorous low-cost New York City apartment developments.
During the 80s, Trump built three casino hotels in Atlantic City: The Trump Plaza Hotel and Casino (opened in 1984), The Trump Marina Hotel Casino (opened in 1985) and The Trump Taj Mahal (opened 1990). In 1988 Donald Trump purchased the 19-story Manhattan landmark Plaza Hotel for over $400 million.
In 1985 Trump made his first appearance on Forbes Magazine’s 400 Wealthiest People list for his personal wealth. In 1987 his semi-autobiographical “Trump: The Art of the Deal” became a bestseller and made him a household name. He remained on the Forbes list until 1990.
Bankruptcy in 1991-2
Time Magazine had compared Trump’s first bankruptcy proceedings in 1991 to the fable of “the Emperor’s New Clothes.” His Art of the Deal had crashed and he had to give up his holdings in Manhattan’s Grand Hyatt Hotel, Atlantic City’s Regency Hotel and several other holdings.
In 1992 bankruptcy proceedings gave the Plaza Hotel’s creditors, including Citibank, a 49% stake in the hotel. The court also stripped Trump of all day-to-day hotel operation management functions except for marketing, which would soon become Donald Trump’s strongest suit. Trump, however, kept his three Atlantic City casino hotels.
In 1996 Trump returned to the Forbes 400 list. He chronicled his return to prosperity in another bestselling book, “Trump: The Art of the Comeback.”
Bankruptcy in 2004
In 2003 Trump’s television series, “The Apprentice”, became the highest rated network television show, further embellishing Donald Trump’s public image as the embodiment of American business success.
In 2004 Trump’s company filed for Chapter 11 bankruptcy, which allowed the company to be reorganized. Trump took the company public and shareholders bought the stock, garnering additional funds to renovate his Atlantic City hotel casinos to “keep them competitive.”
Bankruptcy in 2009
In February 2009, Trump Entertainment Resorts filed for Chapter 11 bankruptcy again. This time Trump had stepped down as the company’s CEO before the filing. He walked out after his company’s bondholders refused his offer to buy the company and take it private.
According to Trump, his corporation’s casino holdings are “less than 2%” of his net worth. Remarkable of his income relies on true estate developers licensing the Trump name, another example of “The Donald’s” marketing mastery.
Related Posts
Filed under Corporation Chapter 7 Bankruptcy by on Dec 5th, 2011. 
Leave a Comment