Trump Taj Mahal casino in Atlantic City in the United States is set to close at the end of the summer due to continued financial losses and labor troubles, the owners said on Wednesday.
“Currently the Taj is losing multi-millions a month, and now with this strike, we see no path to profitability,” Tony Rodio, chief executive of Tropicana Entertainment, said on Wednesday, referring to a strike by its unionized workers.
He said the company intends to send required layoff notices to workers before this weekend, Reuters reported.
Unionized workers at the casino have been on strike over wages and health insurance costs, adding to the resort’s woes.
Trump Taj Mahal was formerly owned by real estate mogul and current US Republican presidential nominee Donald Trump, but is now controlled by billionaire investor Carl Icahn.
According to Rodio, Icahn’s company has lost nearly US$100 million “trying to save the Taj”.
The owners “cannot just allow the Taj to continue burning through tens of millions of dollars when the union has single handedly blocked any path to profitability” he said in a statement.
Bob McDevitt, president a labor union which represents about 1,100 workers at the casino, called the closure “petty” and an attempt to break their labor strike.
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