Donald Trump has resigned from the Trump Entertainment Resorts. He allegedly says that if he can’t manage something, then it isn’t for him. After he resigned from the board, the company filed a Chapter 11 bankruptsy protection proceeding…this is the third time that they have done that.
Mr. Trump had allegedly wanted to buy the company and take it private; but, it appears that the bond holders chose not to go that route. It must be frustrating to have a company that is known by your name, but, have very little control over their actual business decisions.
I would think that most people would assume that something as large as the resorts and casinos with his name on it, is run by him; but, that has not been the case for many years. Will the resorts having to file bankruptsy protection have a negative effect on the value of the Trump name? I doubt it. After all, it isn’t like it is a personal filing for bankruptsy. The Trump name symbolizes making money and that is a strong association, that any business would love to have. If Donald Trump were to somehow remove his name from that business, now that he no longer has a business association with it; I wonder what kind of effect it would have on the business itself?
How much is a name worth? I mean…if it is your name; and you don’t have any business association with a certain company, or any control over that company…would you somehow try to reclaim the value of your name? That would be a difficult position for anyone to be in. If you were a company that saw value in a name that was associated with your company…would you want to let it be removed? That could be a tricky legal battle if it were pursued… in a court room. Is there a limitation of time for allowing a company to use your name in a business deal, if it isn’t written in a contract? I don’t know if that is something that was addressed in this particular business association between Donald Trump and the Trump Entertainment Resorts, or not.
You have to wonder in these financially uncertain times, if the economy is the reason for the resorts having to file the bankruptsy protection; or, is it more a case of how the business is managed, rising business costs, internal power struggles, or some other undisclosed reason. I mean…three times for filing? Doesn’t that seem a bit over the top? Is it even a wise move to continue trying to run a business that is struggling to that degree; knowing that the economy is on shaky ground? After all, it isn’t like resorts and casinos are a necessity, in most people’s daily lives. When most people are forced to watch their finances….trips, resorts, and entertainment or gamboling would seem like obvious areas to curb their spending. Then again, maybe that is just my opinion.