Sources: Taj To File For Bankruptcy, Close In November
By Cleve Bryan
ATLANTIC CITY, N.J., (CBS) -- Sources tell CBS 3 Eyewitness News that the Trump Taj Mahal in Atlantic City is filing for bankruptcy, is expected to close in November and terminate all employees.
Another hit while the city is already down as gamblers learn the Trump Taj Mahal is in trouble.
"This is the only place we go and it's actually fantastic, but I'm not surprised," Taj Mahal customer Lee Meredith said.
A source confirms to CBS 3 Eyewitness News that the Taj Mahal has already begun the process for bankruptcy and layoff notices could go out to workers next week. As of August, the casino hotel had more than 2,800 employees.
"It's catastrophic, I mean what are those families going to do?" Taj Mahal customer Judy Handzo said.
A closure would put 34 of Wayne Richardson's employees out of work at the White House Sub Shop's Taj Mahal location.
"Right now we just have our hands up in the air saying just give us some information. We have another year and a half on our contract over here, I mean what do we do?" Wayne Richardson, General Manager of White House Subs at Taj Mahal, said.
In August a Deutsche Bank forecast that Atlantic City's gambling market will shrink from 11 to 6 casinos by 2017 with the Trump Taj Mahal joining the list of closed properties.
"I can't imagine less than eight casinos down here. I hope not," Taj Mahal customer Rob Handzo said.
Stockton College gaming expert Israel Posner thinks a Taj bankruptcy is a sign Atlantic City's future is darkened, but not doomed.
"The revenue has been declining and the profitably has been declining, so it's not a surprising event. I think the remaining casinos are in reasonably good shape and really are doing reasonably well," Israel Posner of Stockton College Gaming Institute said.
The situation with the Taj will add another layer to discussions that are scheduled for Monday. Governor Chris Christie has called a summit together of local leaders to discuss the future of Atlantic City.
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