A US casino business founded by billionaire Donald Trump is set to file for bankruptcy, for a second time.
Trump Entertainment Resorts Inc, which operates two casinos in Atlantic City, a US gambling mecca close to New York City, filed for bankruptcy yesterday.
The company, which billionaire investor Donald Trump founded but no longer controls, operates the Trump Taj Mahal Casino Resort and the Trump Plaza Hotel and Casino in Atlantic City. There are no implications for Donald Trump's investment here, the former Doonbeg Lodge which was renamed Trump International Golf Links & Hotel Ireland earlier this year, because it is owned by a different corporation.
In fact Donald Trump sued Trump Entertainment last month to have his name taken off the two Atlantic City casinos, saying the current owners had let them fall into "an utter state of disrepair" Trump's stake in the casino company was wiped out when the firm filed for bankruptcy in 2009.
He emerged from a reorganisation the following year with a 10pc stake and a licensing agreement that allowed the properties to continue to use his name.
The billionaire's empire spans residential real estate, hotels and resorts, including the Trump World Tower in New York City, and the luxury golf resort in Doonbeg, Co Clare.
Meanwhile, the Trump Entertainment Resorts bankruptcy is the latest blow to the second-largest US gambling destination after Las Vegas.
Liberalised rules elsewhere means the city is losing out to new rivals in the northeastern US, with gaming revenue nearly halving from its 2006 peak. Over 40 casinos have opened in neighbouring states that previously banned gambling.
At least 8,300 people are losing jobs in Atlantic City with three casinos closing in less than a month.