In yet another sign that the flagship business which makes up the majority of the revenues for the Trump Organization is in serious financial trouble, the Washington Post reports that the family-owned company has laid off 1,500 employees at its hotels in the United States and Canada:
“Seventeen of Trump’s clubs and hotels have closed. The remainder of Trump properties are operating at a fraction of their normal capacity: hotels running with restaurants closed, golf clubs operating with clubhouses shut down, and golfers warned not to share carts or touch the flagsticks.”
Much like other businesses in the travel and accommodations sector of the American economy, Trump’s properties have been hit hard by the slowdown caused by fears of coronavirus.
The horrible news from Trump’s hotels may have been what prompted President Donald Trump to say, “The cure cannot be worse than the problem itself, we’ve got to get our country open.” Further deterioration of the U.S. economy is also a direct threat to the president’s chances of reelection, which is always foremost in his mind.
Also, it was recently reported that the Trump Organization had contacted creditors about delaying loan payments on the approximately $350 million in obligations the company has. Most of that outstanding debt is held by German financial giant Deutsche Bank, which has loaned Trump some $2 billion over the years.
Another looming expense for Trump hotels and resorts is the matter of property taxes, which will total at least $1.8 million and are due within the coming months.
Not long ago, Donald Trump lamented that he was losing “billions” serving as president rather than running his business. The way it looks now, he may wind up losing his business, too.
So much for being a “great businessman.”