Trump Taj Mahal to close its doors; Thousands of employees lose jobs

Before you go, we thought you'd like these...
Trump Taj Mahal to Close Its Doors; Thousands of Employees Lose Jobs

The self-proclaimed "eighth wonder of the world" is getting ready to close its doors.

The owner of the Trump Taj Mahal in Atlantic City, New Jersey, announced Wednesday the casino and resort will close because of an ongoing employee strike.

While the casino bears the Trump name, the Republican presidential candidate doesn't own it anymore. The resort is owned by Carl Ichan and run by Tropicana Entertainment.

The hospitality workers union walked out July 1 after months of contract negotiations. The workers wanted their health insurance and pension benefits back — something that was cut in 2014 by the previous casino owner.

Photos of the Trump Taj Mahal:

16 PHOTOS
Trump Taj Mahal - Atlantic City, New Jersey - video at top (updated 12/18/2014)
See Gallery
Trump Taj Mahal - Atlantic City, New Jersey - video at top (updated 12/18/2014)
A lucky hand for Atlantic City's Taj Mahal. Billionaire investor Carl Icahn is pledging $20 million to help keep the casino open indefinitely, eliminating a plan which would have closed the casino on Saturday.
This Oct. 24, 2014 photo shows the Trump Taj Mahal Casino Resort in Atlantic City N.J. Its owner, Trump Entertainment Resorts, said it is closing one of its two hotel towers and halting the issuance of credit effective Dec. 1, 2014 as it prepares for a Dec. 12 closing. (AP Photo/Wayne Parry)
This Oct. 24, 2014 photo shows an illuminated sign atop the Taj Mahal Casino Resort in Atlantic City, N.J. On Nov. 26, 2014, Trump Entertainment Resorts told the court it will run out of money by Jan. 16 and asked for approval of $5 million in interim financing. (AP Photo/Wayne Parry)
This Nov. 3, 2014 photo shows a plaque bearing the likeness of Donald Trump in front of a no-longer-operative fountain at the entrance to the Trump Taj Mahal Casino resort in Atlantic City N.J. The real estate mogul is suing Trump Entertainment Resorts, with which he is no longer involved aside from a small ownership stake, claiming the company let the properties fall into disrepair, thus harming the Trump brand. (AP Photo/Wayne Parry)
This Oct. 24, 2014 photo shows the Trump Taj Mahal Casino Resort in Atlantic City N.J. Its parent company said on Nov. 10, 2014 that it will shut the casino down if the main casino workers' union does not withdraw its appeal of a court-ordered cost-savings package that ended health insurance and pension coverage for the workers. (AP Photo/Wayne Parry)
This Oct. 24, 2014 photo shows the Trump Taj Mahal Casino Resort in Atlantic City N.J. Its parent company said on Nov. 10, 2014 that it will shut the casino down if the main casino workers' union does not withdraw its appeal of a court-ordered cost-savings package that ended health insurance and pension coverage for the workers. (AP Photo/Wayne Parry)
In this photo taken on Oct. 24, 2014, union members picket outside the Trump Taj Mahal Casino Resort in Atlantic City N.J., to protest the elimination of their health insurance and pension plan as part of the casino's bankruptcy filing. Trump Entertainment Resorts said Thursday, Nov. 13, 2014, that it will close the casino on Dec. 12, if the union does not drop its appeal of a court-ordered savings package. (AP Photo/Wayne Parry)
This Oct. 24, 2014 photo shows the Trump Taj Mahal Casino Resort in Atlantic City N.J. Its parent company, Trump Entertainment Resorts, announced on Dec. 5, 2014 that the casino's closing date is being pushed back until Dec. 20, eight days later than planned, while talks continue on a plan to save it. (AP Photo/Wayne Parry)
This Nov. 3, 2014 photo shows a plaque bearing the likeness of Donald Trump in front of a no-longer-operative fountain at the entrance to the Trump Taj Mahal Casino resort in Atlantic City N.J. The real estate mogul is suing Trump Entertainment Resorts, with which he is no longer involved aside from a small ownership stake, claiming the company let the properties fall into disrepair, thus harming the Trump brand. (AP Photo/Wayne Parry)
The Trump Taj Mahal building stands in Atlantic City, U.S., on Thursday, July 17, 2014. Once the East Coast's gambling hub, Atlantic City has suffered as casinos opened in neighboring states including Pennsylvania and New York after they legalized gambling or expanded betting to increase tax revenue. Photographer: Ron Antonelli/Bloomberg via Getty Images
ATLANTIC CITY, NJ - SEPTEMBER 3: A bird's nest sits in the center of the Trump Plaza sign on September 3, 2014 in Atlantic City, New Jersey. The Trump Plaza is slated to close its doors for good on September 16, 2014. Four of the twelve casinos with which Atlantic City started the year will have closed by the middle of September, putting almost 8,000 people total out of work. (Photo by Jessica Kourkounis/Getty Images)
FILE - In a Tuesday, Sept. 2, 2014 file photo, The Trump Plaza Hotel Casino is illuminated at night in Atlantic City, N.J. A Delaware bankruptcy judge on Wednesday, Sept. 10, 2014, agreed to allow Trump Entertainment Resorts to temporarily continue operations using cash owed to billionaire Carl Icahn, the company's sole secured lender. Judge Kevin Gross also signed routine orders allowing the company, which owns two Atlantic City casinos, to continue paying vendors and employees as it works on a debt restructuring that could avert the closing of the Taj Mahal Casino Resort. The company, whose Trump Plaza resort is closing in a week, sought bankruptcy protection on Tuesday. (AP Photo/Mel Evans, File)
This Sept. 11, 2014 photo shows a sign leading to a closed-off hotel wing of Trump Plaza Hotel & Casino in Atlantic City N.J. Trump Plaza is closing on Tuesday Sept. 16, 2014, the fourth Atlantic City casino to go out of business so far this year.(AP Photo/Wayne Parry)
This Sept. 10, 2014, photo shows burned-out lights in the illuminated facade of Trump Plaza Hotel & Casino in Atlantic City, N.J. Trump Plaza is closing on Sept. 16, 2014, the fourth Atlantic City casino to go out of business so far this year. (AP Photo/Wayne Parry)
This Sept. 10, 2014, photo shows the lightly populated gambling floor of the Trump Plaza Hotel & Casino in Atlantic City N.J. Trump Plaza is closing on Tuesday Sept. 16, 2014, the fourth Atlantic City casino to go out of business so far this year.(AP Photo/Wayne Parry)
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

A statement on the closure said: "Currently the Taj is losing multi-millions a month, and now with this strike, we see no path to profitability. ... [We] have fiduciary duties to shareholders and our directors cannot just allow the Taj to continue burning through tens of millions of dollars."

The resort pointed a finger at the union, blaming it for the failed negotiations, but the union puts the blame on the business.

The Local 54 president put out a statement, saying, "There was no element of trying to reach an agreement here on Ichan's part; it was always 'my way or the highway' from the beginning."

The hotel and casino will close after Labor Day weekend. The owners plan to send out layoff notices to their 3,000 employees in the next two days.

Read Full Story

People are Reading