Carl Icahn to sell Trump Taj Mahal Casino to Hard Rock International
- Author: Zachary Reyes Mar 02, 2017,
Mar 02, 2017, 16:25
Billionaire and Atlantic City casino owner Carl Icahnhas divested himself of the source of a number of recent headaches: the Trump Taj Mahal Casino in Atlantic City.
Billionaire Carl Icahn who took ownership of the Trump Taj Mahal casino to prevent it from going into bankruptcy chose to shutdown the troubled casino in October 2016 after his company ran into problems with the Local 54 of the Unite Here union who went on strike for a number of weeks as they wanted Icahn to provide them with better healthcare and benefits.
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"We are excited to be part of this revitalization of Atlantic City, creating thousands of jobs to help local employment", Hard Rock President and CEO Jim Allen said in a statement.
Icahn, who salvaged Tropicana Casino from bankruptcy in 2015, appeared to have picked up the iconic Taj Mahal property at a bargain price when he swooped it from bankruptcy in 2015.
"We at IEP are extremely happy with our ownership of the Tropicana Casino & Resort", a statement confirming the sale from Icahn Enterprises begins.
The Tribe previous year consolidated its control over the rock "n" roll-themed Hard Rock hotel and casino brand, buying out remaining rights from the owner-operator of Las Vegas' Hard Rock Hotel and Casino.
Icahn played his cards close to his vest when it came to a possible sale.
Icahn, a special adviser to U.S. President Donald Trump, the original owner of the casino, will sell the Taj Mahal - possibly at a loss - instead of investing the $100 million to $200 million it needs to keep going, according to a statement on his website.
Hard Rock's partners are the Morris family, led by Edgewood Properties Chief Executive Jack Morris, and the Jingoli family, led by Joseph R. Jingoli Jr. and Michael D. Jingoli, whose businesses include Jingoli Construction.
Atlantic City Mayor Don Guardian said the sale was an important step in reviving the city's famous boardwalk.
Hard Rock operates 172 Hard Rock cafes, including a still-active restaurant at Taj. He said in January that he had lost $300 million on the property.
"Now is the time to invest in our great city".