Fact Check: Trump's casinos faced multiple bankruptcies during the 1990s.

Fact Check: Trump's Casinos Faced Multiple Bankruptcies During the 1990s

What We Know

Donald Trump's casinos in Atlantic City indeed faced multiple bankruptcies during the 1990s. Specifically, the Trump Taj Mahal filed for bankruptcy in 1991, followed by the Trump Plaza and Trump Castle in 1992. These events marked significant financial turmoil for Trump's casino ventures, which were heavily leveraged and struggled to maintain profitability (source-3, source-7).

According to a study by Jonathan Lipson, a bankruptcy expert at Temple University, Trump's casinos went through four bankruptcies in total, more than any other major business in America during that time (source-2). This pattern of financial distress was not only limited to the 1990s but continued into the 2000s, with another bankruptcy occurring in 2004 (source-4).

Analysis

The claim that Trump's casinos faced multiple bankruptcies during the 1990s is supported by credible sources and expert analysis. The first bankruptcy of the Trump Taj Mahal in 1991 was a significant event, as it was one of the largest casino projects at the time, costing around $1 billion to build (source-3). Following this, the Trump Plaza and Trump Castle filed for bankruptcy in 1992, indicating a pattern of financial mismanagement and excessive debt.

Lipson's study, which utilized data from the New Jersey Casino Control Commission and court filings, provides a thorough examination of Trump's casino operations and their financial outcomes. The findings show that Trump's casinos not only went bankrupt but also performed worse than their competitors in terms of job retention and revenue generation (source-2). This analysis is further corroborated by multiple reputable news sources, including The New York Times and NPR, which have reported on Trump's financial history and the implications of his bankruptcies (source-4, source-7).

While Trump's campaign has disputed the negative implications of these findings, the evidence remains robust that his casinos did indeed face significant financial challenges, leading to multiple bankruptcies during the 1990s.

Conclusion

Verdict: True
The claim that Trump's casinos faced multiple bankruptcies during the 1990s is accurate. The evidence from multiple credible sources confirms that Trump's casino ventures were marked by financial instability, culminating in four bankruptcies, with three occurring in the early 1990s. This history of financial distress is well-documented and supported by expert analysis.