Business Donald Trump

The Trump Name Is So Toxic That His Company Is Facing Complete Financial Collapse

Donald Trump’s ultimate dream for being president was that he could parlay his administration into a financial windfall for his company, the Trump Organization.

But things haven’ worked out that way, the Wall Street Journal reports, as the former president’s company is facing a financial collapse due to several factors:

“Former President Donald Trump saw sharp revenue declines across his family businesses last year as the Covid-19 pandemic took a steep toll on the Trump Organization’s hotels and golf resorts, a marker of the many financial challenges Mr. Trump faces after leaving the White House. Newly released data from the Office of Government Ethics shows that the minimum revenue generated by Mr. Trump’s businesses fell by nearly 40% from a year earlier, and declined even more at some of the company’s most lucrative properties.”

Ironically, the biggest hindrance to Trump’s business being financially stable is in the Trump name itself, which is now badly tarnished after four years of controversial policies from his administration and the lingering stigma of being attached to the insurrection that took place at the U.S. Capitol earlier this month:

“The issues facing the Trump Organization are likely to get worse in the coming months. Some of the business’s partners and clients said they would cut ties to Mr. Trump after his supporters stormed the Capitol in an effort to overturn President Biden’s election win. The disclosure, which covers 2020 and the first few weeks of 2021, shows business plunging at key Trump Organization properties. The Trump International Hotel in Washington, D.C., saw revenue fall to around $15 million compared with more than $40 million in 2019. The Trump National Doral Miami golf resort posted revenue of about $44 million, down over 40% compared with 2019.”

Trump’s failure to control the COVID-19 pandemic has also been catastrophic to his corporation:

“The latest disclosure is the first data to indicate the impact of Covid-19. It shows Mr. Trump’s businesses taking in at least $278 million over the reporting period, down from at least $446 million in 2019. Besides the revenue falloff due to the pandemic, the Trump Organization has to contend with a substantial debt load. It has more than $400 million of loans coming due in the next few years, and refinancing the debt could be a challenge, particularly as once-loyal lenders to the Trump Organization such as Deutsche Bank AG seek to distance themselves from the former president.”

Eric Trump, who serves as executive vice president of the Trump Organization, tried to suggest that the Journal’s report was nothing to worry about because of his father’s name recognition:

“I have 75 million people who would follow my father to the ends of the Earth. He’s got probably the most famous brand in the world. The opportunities for somebody like that are going to be endless.”

Endless opportunities? More like endless risk and zero reward, as Eric and the rest of the Trumps are starting to find out the hard way.

By Andrew Bradford

Proud progressive journalist and political adviser living behind enemy lines in Red America.

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