What is Trump without Trump? We’ll find out now that Donald Trump has resigned as chairman of Trump Entertainment Resorts after bondholders rejected an offer to buy the company from them. His daughter, Ivanka, also stepped down from the board.
In a statement released last month, Trump said essentially the casino company just wasn’t worth his time.
“While the Trump Organization grows and flourishes, Trump Entertainment Resorts, of which I am a stockholder, has languished,” he said. “The Trump Organization’s portfolio of residential, commercial, hotel and golf properties has expanded all over the world, while Trump Entertainment Resorts has yet to diversify outside of Atlantic City.”
Trump has not had power in the reorganized company-after emerging from bankruptcy in 2006, his role was diminished. And he has not been happy with the decisions made by the board.
“During the past number of years, in exercising their oversight authority, the bondholders’ representatives have made a series of bad decisions and encouraged wasteful spending, which has led to severe problems within the company,” he said.
Trump continues to have contractual obligations to the company, such as appearing at openings and special events, which he will abide by, he said.
Mark Juliano, the CEO of Trump Entertainment, says Trump’s departure is just another problem for the company.
“Obviously, the buildings and the company could lose quite a bit of cachet, and that goes for Ivanka as well,” Juliano said. “So much of the company is built around the image of the Trumps, so we have to figure out how this all works out.”
Trump is leaving the door open, however, to a possible return.
“I will give strong consideration to saving what was once a great casino hotel operation that bore my name,” he said. “But unfortunately it is clear that I will have to work from the outside-the existing bondholder control will not permit a brighter future.”
