Atlantic City is facing another casino closure this October with the Trump Taj Mahal. In 2014, the area suffered several casino losses and if the Taj does close as announced, there will be only seven gaming venues remaining.
Billionaire businessman Carl Icahn took over the Taj Mahal Casino this year and was provided with the option to do away with health care and pensions of employees to try and save money as he revitalized the property. This basically backfired as employees were not happy with the changes to their benefits. Employees of the venue have been on strike since July and show no signs of stopping.
A union bid was presented just last week to try and see the venue remain open, a bid that Icahn rejected. With the closure, over 3,000 individuals will lose their jobs. According to the Associated Press, Icahn has to formally ask the regulators of New Jersey gambling to close and he has yet to do so.
The constant battle between Icahn and the casino workers union has seen the casino owner decide to walk away from the property. Icahn just acquired the venue this year via Chapter 11 bankruptcy for $300 million. The businessman says he has lost around $100 million while dealing with the Taj.
Reportedly, the management team of Icahn was presented with a bid by the Local 54 of the Unite-HERE union. The offer stated it would cost only $1.3 million over the last offer from Icahn, restoring health insurance this January for workers of the venue. The deal also included Icahn adopting the same contract terms by September of next year that were agreed upon before the casino strike began.
For now, it seems that Icahn is serious about closing the venue and not trying to work out a deal with the casino workers union. We will see in the coming weeks if he asks permission to close the casino or perhaps agrees to a deal to keep workers employed and the casino afloat.
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