Fact Check: Trump's casinos faced bankruptcy and closure in the 1990s.

Fact Check: "Trump's casinos faced bankruptcy and closure in the 1990s."

What We Know

Donald Trump's casinos in Atlantic City indeed faced significant financial difficulties during the 1990s, leading to multiple bankruptcy filings. The Trump Taj Mahal was the first to file for bankruptcy in 1991, followed by Trump Plaza and Trump Castle in the subsequent years. According to a report by the House of Representatives, Trump narrowly escaped financial ruin during this period by delaying payments on his debts and eventually took his casinos public, shifting the financial risk to stockholders (source-1).

The financial struggles were exacerbated by broader economic conditions, including a recession and the effects of the Gulf War, which negatively impacted the gambling industry in Atlantic City. A study highlighted that Trump's casinos lost more jobs and money compared to their competitors during this time (source-3).

Analysis

The claim that Trump's casinos faced bankruptcy and closure in the 1990s is supported by multiple credible sources. The House report outlines the timeline of financial distress, indicating that Trump's casinos were unable to generate sufficient revenue to cover their debts, leading to bankruptcy filings (source-1).

Additionally, the New York Times reported that Trump's Taj Mahal casino took three years to recover any money owed after its bankruptcy, illustrating the severe impact of these financial issues on Trump's business operations (source-4).

The Wikipedia entry on Trump Entertainment Resorts confirms the multiple bankruptcy filings, noting that the company filed for bankruptcy in 2004, 2009, and 2014, with the initial filings occurring during the early 1990s recession (source-5).

While some sources may carry a bias, such as those from financial news outlets or political commentary, the consistency of the bankruptcy claims across various reputable sources lends credibility to the assertion that Trump's casinos faced bankruptcy and closure during the 1990s.

Conclusion

Verdict: True
The claim that Trump's casinos faced bankruptcy and closure in the 1990s is substantiated by multiple credible sources, including reports from the House of Representatives, academic studies, and news articles. The evidence clearly indicates that Trump's casinos struggled financially during this period, leading to several bankruptcy filings.