Fact Check: Trump have history of chapter 11 bankruptcies in his casinos

Fact Check: "Trump has a history of Chapter 11 bankruptcies in his casinos"

What We Know

Donald Trump has indeed filed for Chapter 11 bankruptcy protection multiple times in relation to his casino businesses. According to a study by Jonathan Lipson, a professor at Temple University, Trump's casinos in Atlantic City, including the Trump Taj Mahal, Trump Plaza, and Trump Marina, went through four bankruptcies during their operation, which is more than any other major business in America at the time (Temple Now). The bankruptcies occurred in 1991 (Trump Taj Mahal), 1992 (Trump Plaza), and 2004 (Trump Hotels and Casinos Resorts) (ABI).

These bankruptcies were part of a broader trend where Trump's casinos consistently lost more money and jobs compared to their competitors. Lipson's research indicates that Trump's casinos lost about 37% more employees and 33% more revenue than other Atlantic City casinos from 1997 to 2010 (Temple Now).

Trump has characterized these bankruptcies as a strategic business practice to restructure and save jobs, a claim that has been met with skepticism by experts who argue that the evidence shows he benefited personally while the casinos continued to struggle (Temple Now).

Analysis

The claim that Trump has a history of Chapter 11 bankruptcies in his casinos is supported by multiple credible sources. The Temple Now article provides a detailed account of Lipson's study, which is based on data from the New Jersey Casino Control Commission and court filings. This lends significant credibility to the findings, as they are derived from official and publicly available records (Temple Now).

Additionally, the American Bankruptcy Institute confirms that Trump filed for bankruptcy protection four times, which aligns with Lipson's findings (ABI). Other sources, such as the New York Times and Congressional documents, also discuss the impact of these bankruptcies on workers and the overall performance of Trump's casinos, further corroborating the claim (New York Times, Congressional documents).

However, it is important to note that Trump's campaign has disputed the implications of these findings, arguing that they do not reflect his overall business acumen. This introduces a potential bias in the interpretation of the data, as Trump's supporters may downplay the significance of the bankruptcies while critics emphasize them as evidence of mismanagement (Temple Now).

Conclusion

The claim that Donald Trump has a history of Chapter 11 bankruptcies in his casinos is True. He has filed for bankruptcy protection four times related to his casino operations, which is more than any other major business in the same sector. This is supported by multiple credible sources and extensive research, indicating that Trump's casinos not only faced financial difficulties but also performed worse than their competitors in terms of job retention and revenue generation.