Donald Trump Bankruptcy – The truth about Trump and his failures
As people buzz about Donald Trump these days, it's strange that they rarely talk about those Donald Trump bankruptcies.
Full disclosure: my company filed for business bankruptcy protection over a decade ago. At the time I thought it was a savvy business move (and I also looked up to Donald Trump back then). But I now realize it was a HUGE mistake (and detail why in this article about filing for personal bankruptcy protection).
The Donald sure does one thing well… public relations. Most consider Donald Trump a world-class business success. And he loves to tell us that. But nothing can be further from the truth. And his PR team sure does make it hard to find Trump's failures…
… So I decided to invest about 30 minutes on Google and see EXACTLY how many times Donald Trump has failed. The results are a bit stunning – so I compiled this list (along with his other failed ventures) that have hurt countless people on his way to "fame and fortune":
Trump Plaza Hotel bankruptcy – On Nov 2, 1992, Trump's Plaza Hotel was forced to file Chapter 11 bankruptcy protection after being unable to make its debt payments. Under the plan, Trump agreed to give up a 49% stake in this luxury hotel to Citibank and five other lenders.
Trump Shuttle closure – The Trump Shuttle became no more when it merged with Shuttle Inc, operating as USAir Shuttle in 1992.
Donald Trump personal bankruptcy – By 1994, Trump slashed a large portion of his $900 million personal debt and washed away $3.5 billion in his porfolio's business debt.
Trump Hotels & Casino Resorts' bankruptcy – On November 21, 2004 Trump's company filed for bankruptcy. Trump said the filing was "really just a technical thing" as the best way to implement a restructuring plan.
Donald Trump personal bankruptcy (again) – Once again, Trump filed for personal bankruptcy protection and restructured his debt in 2004.
Taj Mahal bankruptcy – On November 22, 2006 Donald J. Trump’s casino empire filed for bankruptcy protection after months of negotiations with bondholders over restructuring a crushing debt.
GoTrump.com – Donald Trump's online travel search engine was launched in 2006. Just a year later it folded.
Trump 29 Casino – Now known as Spotlight 29 Casino because Donald Trump's ownership/management involvement ended in 2006).
Donald Trump Ocean Resort Baja – This Mexican resort was never built and investor's deposits (up to $500,000.00) have not been returned. Trump claims these buyers are “lucky” because they would have lost more money in a tanking market had the projects been actually built. Trump claims he only lent his name to the project (and it was the developers who allowed the project to fail).
Trump Towers Tampa – Trump is being sued right now in Tampa, Florida for taking deposits on a 52-story condo tower that he never built. None of the buyers got their $45,000 deposits back. And in an ironic twist, initial sales of this condo were so successful that all deposits were returned to charge a higher price.
Trump International Hotel and Tower Chicago – Trump built the second tallest building in Chicago… he also defaulted on a $40 million loan. Rather than having to pay the bank loan, Trump demanded the same bank should pay him $3 billion for "undermining the project and damaging his reputation."
Trump Magazine – Trump's private-labeled publication (which was aimed at affluent readers in major US markets) suffered from sagging ad sales. It folded on May 19, 2009. This was Trump's third failed attempt at offering a magazine bearing his name.
Trump International Hotel & Tower New Orleans – If constructed, this Trump Tower would become the tallest building in the city of New Orleans and the state of Louisiana at 70 stories high. But the project was put on hold in February of 2009.
Trump Entertainment Resort Holdings bankruptcy – On February 17, 2009 casino operator Trump Entertainment Resorts Inc filed for Chapter 11 bankruptcy protection (with a debt ratio of $50 million in assets to his $500 million in debt).
Donald Trump SoHo Hotel Condominium – Donald Trump was sued for fraud over his New York SoHo condo offering in 2010. The lawsuit by 15 plaintiffs alleged that during the first 18 months of marketing, Trump advertised that the building was "30, 40, 50, 60 percent or more sold" when in fact just 16% of the units were sold.
Trump International Hotel & Tower Fort Lauderdale – Construction was to be completed by the end of 2009 featuring 298 hotel condominium units. Having defaulted on a $139 million loan, Donald Trump announced in November of 2010 he was no longer affiliated with the project.
Trump International Hotel & Tower Las Vegas – Through the end of February 2010, the 1,282-unit condominium hotel had only closed on 302 units. That equates to a 23.6% vacancy rate. It was forced into renting out the building as apartments.
Trump International Hotel & Tower in Dubai – This 62-story mixed-used building on the Palm Jumeirah’s Golden Mile was first announced in 2005. Construction was never started and the $2.9 billion project had been canceled and replaced with a shopping mall.
When you run the math, that's 19 failures in less than 17 years… that averages one new failed business every 11 months. Even worse, a LOT of people were financially ruined because of this single "successful" business guru.
Needless to say, I no longer lookup to "The Donald."
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