Published on:

Atlantic City casino closures, bankruptcy latest in downward spiral for seaside town

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

 

A company that runs two Atlantic City, New Jersey casinos filed for bankruptcy protection on Tuesday.

Taj Mahal Charlotte Bankruptcy Lawyer North Carolina Debt AttorneyAt least one of the Atlantic City casinos operated by Trump Entertainment Resorts, Inc. will close, becoming the latest in a slew of closures in the seaside town. Trump Entertainment operates the Trump Plaza Hotel and Casino and the Trump Taj Mahal Casino Resort.

Trump Plaza is slated to close on Sept. 16. The Trump closing follows the recent closings of the Showboat and Revel Casinos. Revel just opened in 2012 but filed for bankruptcy twice since its opening.

A total of three casinos closed earlier this year with the fourth closure expected next week. Gambling revenue has been cut in half since 2006. The casino closures have cost Atlantic City-area residents some 8,300 jobs. Atlantic City’s decline was spawned by falling gambling revenue and hotel occupancy rates, not to mention competition from fledgling hotel-casino-resorts in nearby states.

David Tawil, president of New-York based hedge fund Maglan Capital, said the Trump bankruptcy is another step in a “never-ending spiral for Atlantic City.” He expressed surprise at the speed at which the casino industry has fallen.

This is Trump Entertainment’s third bankruptcy. Namesake Donald Trump’s stake in the firm was wiped out during the company’s 2009 bankruptcy. After the company’s reorganization, however, Trump took a ten-percent stake and licensed his name to the company to use.

The effects of the casino closings are being felt by residents of Atlantic City and beyond. In July, Atlantic County—which includes Atlantic City—recorded the largest nonfarm employment drop of all metropolitan areas in the United States compared to the same time last year. The city has raised property taxes on homeowners a whopping 85-percent since 2010, to make up for lost casino and hotel revenues.

In a way, Atlantic City has been a veritable tale of two cities, even before the casino closures. It is a tale of those who come to gamble and vacation there on one hand, and a tale of those who live and work in the city on the other.

The per-capita income of Atlantic City residents is less-than half the median income of New Jersey residents. Only a third of residents own their homes, compared with two-thirds of state residents. The median value of owner-occupied homes is significantly lower than the rest of the state, while the percentage of persons living below the poverty level is a whopping 29.9 percent, compared with just 9.9 percent statewide.

While the casino closures are only adding to those woes, some residents sounded a hopeful note. Chris Ireland, a 55-year-old bartender who worked at the Showboat Casino, said Atlantic City was a strong community. “We’ll get through this,” he said. His wife, Keisi, also lost her job as a cocktail server at Showboat. Combined, the pair spent 41 years working at the casino.

If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC find additional resources here. As professionals who are experienced at handling all kinds of bankruptcy matters, our attorneys will provide you with the best advice for your particular situation.

 

 

About the Author

Bryan 1Bryan Stone is a Partner with Arnold & Smith, PLLC, where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord-tenant issues.

A native of Macon, Georgia, Mr. Stone attended the University of Georgia, where he earned a BBA in Banking and Finance, and Wake Forest University School of Law, where he obtained his law degree.

Following law school, Mr. Stone relocated to Charlotte, where he currently serves as Chair of “Bravo!” – a young professionals organization associated with Opera Carolina – and founded the University of Georgia Alumni Association of Charlotte.

In his spare time, Mr. Stone enjoys perfecting his barbeque skills for the annual “Q-City BBQ Championship” and playing softball in the Mecklenburg County Bar softball league.

 

 

Sources:

http://www.reuters.com/article/2014/09/09/us-trump-bankruptcy-casinos-idUSKBN0H413E20140909

http://quickfacts.census.gov/qfd/states/34/3402080.html

http://news.yahoo.com/atlantic-citys-laid-off-casino-workers-swell-jobless-223012589–finance.html

 

 

Image Credit:

http://upload.wikimedia.org/wikipedia/commons/6/6e/Trump_Taj_Mahal.jpg

 

 

See Our Related Video from our YouTube channel:

http://www.youtube.com/user/ArnoldSmithPLLC?feature=watch

 

 

See Our Related Blog Posts:

Yet Another City Moves Towards Bankruptcy :: Charlotte Bankruptcy Lawyer

Bankrupt Detroit Announces Deal To Save Art Museum