Trump Still Fighting: Part II of III

Last time we looked at the fact that Donald Trump keeps saying how well his casinos are doing, even while experts say that he is going down a slippery slope. But even now, his own executives are saying that Trump may not be able to survive the latest round of slot machines that are coming into PA and NY.

Experts say that the Trump properties have spent years without crucial upgrades due to a lack of cash flow. They say that without major upgrades, they will never be able to catch up in an industry that is all about bigger and better. They say that the properties have been lacking in the past few years and now they have to try and play catch-up.

Mark Juliano, Trump’s COO, said that while most companies in the casino industry are bringing in tons of money, they aren’t. He said that there have been changes that needed to be done that were not done until recently, so they have been “less competitive” than some of the other hotels.

Juliano says that the company is turning around their image though, as well as the way their properties look. The company has just hired Merrill Lynch to take a look at their “options” as Trump himself put it. There is talk that Trump may either sell off all three properties or pull out of Atlantic City altogether, or he may sell one off to raise the money to upgrade the other two.

After the restructurization, Trump still owns 30% of the company Trump Entertainment, as it is a publicly traded company. He used to own more of the conglomerate, but chose to sell much of it off to raise much needed capital a couple of years ago. Many think that what Trump has done to the casinos so far just isn’t enough, and one rival said that he has had his “head in the sand” and just isn’t accepting the facts.

Next time: What got Trump here, and where does he need to go to survive?


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