Atlantic City’s crumbling casino market disintegrated even further on Saturday as the owners of the Trump Plaza casino said they expected to shut it down mid-September.
Trump Entertainment Resorts told reporters that no final decision had been made on the Boardwalk casino, but the company said it expected the casino to close its doors on Sept. 16.
Notices warning employees of the expected closure were to go out to the casino’s more than 1,000 employees today.
If Trump Plaza closes, Atlantic City could lose a third of its casinos and a quarter of its casino workforce in less than nine months. The Atlantic Club closed in January, the Showboat is due to close next month and Revel might do likewise if a buyer cannot be found in bankruptcy court.
The head of Atlantic City’s main casino workers’ union demanded state lawmakers help to head off what he called a “pending catastrophe” that would affect the state’s tourism industry and tax collections.
Trump Entertainment Resorts told reporters that its managers and board of directors “have been reviewing alternatives for the property. Although this review has not been completed and no final decision has been made, the company expects that it will terminate the operations of Trump Plaza Hotel and Casino on or shortly after September 16, 2014.”
A source with direct knowledge of the situation who was not authorized to speak to the media told reporters that the company had hired a search firm to solicit buyers for Trump Plaza, an effort that remains ongoing. So far, no buyer has emerged.
Trump Plaza, which cost US$210 million to build, opened in May 1984 as one of Donald Trump’s pet projects. The real-estate mogul has since limited his dealings in Atlantic City to a 10 percent stake in Trump Entertainment Resorts.
“I let them use my name, but I have nothing to do with it,” Trump told reporters on Saturday.
“Atlantic City has suffered for years. Many mistakes were made by government, tremendous mistakes, including no reinvestment in town; they would take casino revenue and put it in places that had nothing to do with Atlantic City. I got out seven years ago; my timing was tremendous,” he added.
In recent years, New Jersey has only required the use of casino development taxes in Atlantic City.
The news is the latest in a cascade of setbacks for Atlantic City’s gambling market, which until a few years ago was the second-largest in the US after Nevada; Pennsylvania has now taken over that spot. On Jan. 1, Atlantic City had 12 casinos. By the end of September, it could have eight.
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,
‘SWARM TECH’: Joint venture FARobot is to develop autonomous mobile robots that would first be deployed in Hon Hai’s factories to optimize production efficiency Hon Hai Precision Industry Co (鴻海精密) and Adlink Technology Inc (凌華科技) have formed a robotic venture that aims to use “swarm technology” to create robots that can communicate with one another on the factory floor to optimize production efficiency. Hon Hai is Apple Inc’s leading iPhone assembler and the world’s largest contract electronics maker, while Adlink supplies industrial computers and Internet of Things solutions. Through a subsidiary, Hyield Venture Capital Co (鴻揚創投), Hon Hai holds a 51 percent stake in autonomous mobile robot (AMR) developer FARobot (法博智能移動), while Adlink owns the remaining 49 percent. Together, the two companies put up NT$200