Trump Castle Associates 1992
In less than a year he was back in bankruptcy court for his other Atlantic City casinos. This bankruptcy included the Trump Plaza Hotel in New York, the Trump Plaza Hotel and Casino in Atlantic City as well as the Trump Castle Casino Resort. He gave up half his interest in the New York Plaza to Citibank, but retained his stake in the casinos.
Sears Files For Bankruptcy More Stores To Close
Yet, it’s why the fact that Sears is now facing insolvency did not come as a surprise to him or any of the dozens of former co-workers he remains in touch with as president of the Atlanta chapter of the National Association of Retired Sears Employees, which is the association’s largest group in the country.
“Many are surprised the company was able to stay afloat for as long as it did,” he said.
White said he started out as a manager training in the Decatur, Georgia, store. He remembers his years at Sears as good times. He said the company had “terrific” profit-sharing and pension plans “and we treated our co-workers more like family.”
“I spent most of my career in the Duluth, Georgia, store,” he said. “In March, or maybe it was April, we had a reunion with the people who worked at the store when I did in the ’80s. We had a lunch and then we went to the store and, really, it was sad.”
Because it was empty.
“It used to be full of customers,” he said. “The store used to generate $54 million in sales.”
While market experts blame the rise of internet shopping for the decline of brick-and-mortar stores like Sears, White said “that’s been the trend even before the start of the internet.”
Sears failed to recognize the threats posed by competitors like Walmart and Amazon, he said.
“That was a big moneymaker for us,” he said.
“It put food on my table for 30 years, and for that I am grateful,” he said. “It was considered the premier retailer in the country.”
Rise And Fall Of A Retail Empire
Older generations can recall a very different trajectory for Sears, which was formed out of a partnership between Richard Sears and Alvah Roebuck, originally to sell watches and jewelry to America’s far-flung towns.
Starting in 1925, Sears began building brick-and-mortar stores, adding hundreds within just a few years. By 1931, retail sales passed its catalog revenue. Erik Gordon, a professor at the Ross School of Business at the University of Michigan, noted in an interview how Sears “early on, saw suburbanization and shopping malls as an opportunity and they saw it as such a big opportunity they built malls.”
Sears developed into a multifaceted mammoth. Along with its catalog and retail business, and private brands, it housed among other units an insurance company, a real estate company and a credit card , all of which were eventually spun off.
“They knew about fulfillment. You look at it and think, ‘Oh my goodness, they were Amazon.'”
Professor, Ross School of Business at the University of Michigan
Not long after Lampert and his hedge fund ESL Investments took over Kmart, following the latter’s bankruptcy in the early 2000s, he merged the discount store with Sears in a move to expand the product range of both stores and accelerate Sears’ off-mall strategy. But both banners went into the merger with longstanding existing issues.
Or as Gordon puts it: “They knew about fulfillment. You look at it and think, ‘Oh my goodness, they were Amazon.'”
You May Like: Fizzics Beer Net Worth
In 1990 Sears Lost Its Spot To Walmart As America’s Biggest Retailer
According to CNBC, Walmart’s sales rose to $32.6 billion, up 26%. Sears’ sales, on the other hand, only rose 1.2%. However, the company’s sales for 1990 still landed at $31.9 billion.
In 1993, Sears discontinued its famous catalog to focus on in-store retail operations.
Two years later, in 1995, the company spun out its largest subsidiary, the Allstate Corporation, which had grown from the insurance company Sears founded in 1931.
The company also began offering car and electronic repair services in addition to its regular inventory of home goods, clothing, and appliances in an effort to attract more customers.
Deadline To File Claims
The Bankruptcy Court has set the following deadlines for filing proofs of claim against the Debtors:
- General Bar Date : April 10, 2019 at 5:00 p.m.
- Governmental Unit Bar Date: September 3, 2019 at 5:00 p.m.
A copy of the Notice of Deadline for Filing Proofs of Claim is available here.
- The Bar Date Notice was mailed to all known parties with a relationship to the Debtors, including shareholders, customers, and current and former employees.
- The fact that you have received the Bar Date Notice does not mean that you have a claim or that the Debtors believe that you have a claim.
- The Bar Date Notice lists who must file a proof of claim, and who need not file a proof of claim.
- Please read the Bar Date Notice carefully. You should consult an attorney if you have any questions, including whether you should file a proof of claim.
- Prime Clerk is not permitted to provide legal advice, including advising as to whether or not you should file a proof of claim.
Answers to FAQs are available here.
You May Like: How Many Times Has Trump Filed Bankrupcy
Trump Ice Natural Spring Water
Trump Ice was a bottled water brand. The winner of The Apprentice Season 2, Kelly Perdew, served as executive vice president of the organization.
The companys website no longer exists, and the product can no longer be found in national grocery chains or stores but some can still be found on eBay and other auction sites.
The company was used as a gimmick in the shows first season when contestants marketed and sold the product.
Sears Filed Bankruptcy Should You
News today made it very clear that Sears filed bankruptcy. As a bankruptcy law firm, any time we see a corporation filing bankruptcy, we know its a business decision. When it comes to your personal bankruptcy filing, we encourage you to think of it as a business decision as well. This means its time to set aside your emotions and do what makes financial sense for you and your family.
You May Like: Do It Yourself Bankruptcy Chapter 7 Software
Trump Hotel & Casino Resorts 2004
Trump didnt go back to bankruptcy court again until November 2004, when he filed to shed debt at his various Atlantic City casinos and a riverboat in Indiana. It was another quick trip through bankruptcy court the company shed $500 million in debt and emerged from bankruptcy the following May. Trump turned over majority control of the company to his bondholders but remained the largest single shareholder, and he once again kept control of the casinos.
The Trump Entrepreneur Initiative
The now-defunct Trump Entrepreneur Initiative was once known as Trump University. The for-profit education company offered courses in real estate, asset management, entrepreneurship, and wealth creation.
The company was not an accredited school and did not offer high school or college credits.
The company was embroiled in an ongoing, high-profile scandal during Trumps presidential campaign, and it continued into his tenure as president.
The Trump Entrepreneur Initiative faced a lawsuit in 2013alleging illegal business practices. The New York state attorney general filed a $40 million civil suit that alleged the corporation made false promises to its students.
A New York judge found Trump personally responsible. In late March 2017, when Trump was serving as president, a judge approved a $25 million settlement for the defrauded students.
Dont Miss: What Is Bankruptcy Code In India
You May Like: Has Trump Declared Bankruptcy
The Future For Your Family
After years of living paycheck to paycheck, we know its hard to imagine a future for you and your family that does not involve scraping by. The truth is, that future does exist. Getting out from and other types of debt is a huge step in the right direction. Imagine being able to pay all of your bills each month and have some left over for savings, retirement, or family outings. The federal bankruptcy code offers powerful relief from debt, while letting you keep your home and car by using the Bankruptcy Exemptions.
Great Atlantic & Pacific Tea
Date: July 2015
Summary: In a second bankruptcy within 5 years, or Chapter 22, the Great Atlantic & Pacific Tea Co. Inc. chose to sell 125 stores and close 25 in efforts to save jobs and pay creditors. The parent company faced financial difficulties, internal strategy issues, and industry shifts that ultimately led to bankruptcy.
Recommended Reading: What Is A Bankruptcy Petition Preparer
How Is Donald Trump Able To File For Bankruptcy So Many Times
Prior to the 2016 presidential election, when people discussed then-candidate Donald Trump, they often focused on his personal finances and how he had run his businesses. One of the common refrains had to do with his bankruptcies. According to pundits and critics, Trump had been unsuccessful in business, having to file bankruptcy several times in order to get by. Some people may have seen those stories and read the reports only to wonder how a person can declare bankruptcy so many times. For someone with the wealth of Donald Trump, how is it possible to keep declaring bankruptcy?
Donald Trump and personal bankrtupcyTo understand Donald Trump and bankruptcy, one must first understand the distinction between personal finances and business finances. Businesses are separate entities according to the law. In particular, corporations have their own legal personhood. They are specifically created so that people can avoid personal financial liability if things happen to go wrong. With this in mind, Donald Trump has actually never declared personal bankruptcy. In each instance, his bankruptcy has been a result of a business failure rather than a personal failure.
There have been many other business bankruptcies. Most of those have involved casinos. While Trump has tried hard in the casino business, he has had a number of failures there. On top of that, his Trump Plaza Hotel had to declare bankruptcy in order to seek ample protections.
How Many Casinos Did Donald Trump Bankrupt
byMonellaNovember 24, 2020, 12:56 pm
Donald Trump, the ex-president of the United States, has always been projected as a successful businessman. He stated a net worth of $10 billion from his various companies, but many of them went bankrupt. As stated by the critics, one of the main reasons behind this is his management strategies and reckless attitude towards the work. However, people working with him say that he efficiently used the federal laws in his favor, which is a clear depiction of his keen business understanding.
According to several research and interviews conducted, it was found that Trump invested a minimal amount of his own money in the venture. He shifted his debt to the casino slots, earned millions of dollars in salary and other payments. It means his bankruptcys main burden fell on the investors and other stakeholders associated with his companies.
Also Check: Getting Apartment After Bankruptcy
Personal Vs Corporate Bankruptcy
One point of clarification: Trump has never filed personal bankruptcy, only corporate bankruptcy related to some of his business interests. I have never gone bankrupt, Trump has said.
Here is a look at the six Trump corporate bankruptcies. The details are a matter of public record and have been widely published by the news media and even discussed by Trump himself.
You May Like: What Does Trump Think About Health Care
Judith And Nicolas Jacobson
Now divorced, the Jacobsons were a married couple who previously owned a chandelier business in West Palm Beach, Florida. In 2004, Trump ordered three fixtures worth $34,000 for his Mar-a-Lago resort from them, but then refused to pay in full, saying the Jacobsons work was shoddy, WSJ reports. They denied this claim but facing endless legal wrangling, the couple settled.
A review of Palm Beach County court records showed no other payment disputes involving Classic Chandeliers. The shop later closed. Mr. Jacobson died in 2015, notes the WSJ.
Trump defends his history of payment disputes as simply the expected cost of being a tough negotiator in a cutthroat business. The WSJ article, in particular, offers Trumps camp ample space to respond. They strongly defend the tactics as hard but fair , but the paper notes that they stood out as particularly aggressive in the industry and in the broader business world.
Will Trumps treatment of contractors affect whether or not you decide to vote for him?
Inc. helps entrepreneurs change the world. Get the advice you need to start, grow, and lead your business today. for unlimited access.
Recommended Reading: How Many Times Have Donald Trump Filed Bankruptcy
Lampert Takes The Reins
As chairman of the combined companyhe took on the CEO role as well in 2013Lampert initially attracted breathless praise from the media. A 2004 Bloomberg Businessweek cover story called him “the next Warren Buffett.” Just as Buffett turned a failing textile company into a vehicle for superhuman returns, Lampert would use Kmart as a cash cow for savvy acquisitions. His hedge fund’s average annual return of 29% from its inception to 2003 boded well.
A little over 13 years later, such comparisons seem ridiculous. Sears Holdings’ sales rose in 2006, its first full year as a combined company, but then fell in each of the following nine years. For a while, Sears’ stock rose anyway, but the financial crisis wiped 85% off its value between its April 2007 high and its November 2008 low. The recovery was tepid and short-lived. Shares peaked again that April at less than two-thirds their pre-crisis high. They have not recovered since.
Kmart was Lampert’s first majority stake, and he proved to be a better speculator than a manager. A 2013 Bloomberg article excoriates his Ayn Rand-inspired approach: In 2008, he split the company into 30 divisionswhich swelled to 40 a year latereach of which reported profits separately and had to compete with the others for resources. Lampert was both strict with money and distant, seldom leaving his home in South Florida.
A Leaner Sears Emerges From Bankruptcy But Can It Survive
In some ways, the new Sears has a lot in common with the company that filed for bankruptcy protection in October.
Its largest shareholder is now its owner. The U.S. Bankruptcy Court for the Southern District of New York approved a $5.2 billion bid by Sears Chairman Edward Lampert to buy the company through his hedge fund, ESL Investments, last week.
Plans outlined by ESL, including smaller stores and a focus on the retailers strengths like appliances, sound like initiatives Sears has pitched before, as losses mounted in the years leading up to the companys bankruptcy.
But early attempts to put the strategy in place were hampered by Sears past financial challenges, said Mohsin Meghji, Sears chief restructuring officer and managing partner at M-III Partners, an advisory firm hired by Sears.
It is a high-quality management team but all of their horsepower was largely focused around legacy issues related to contractual obligations, debt leverage and liquidity management, Meghji said.
Is there a place for a niche, appliance-focused retailer called Sears? Sure. But it has to be executed really well, and previously it wasnt done as well as it could have been, he said.
Now, Hoffman Estates-based Sears has another chance, this time with healthier finances after shedding debt, pension obligations and unprofitable stores in bankruptcy.
You May Like: How Much Does It Cost To File Bankruptcy In Missouri
In 2015 Sears’ Revenue Fell From $362 Billion Two Years Prior To $251 Billion
Increased competition with other big-box retailers and the rise of Amazon and online shopping spelled out the end for Sears.
Within the company, tensions were brewing between lower-level management, employees, and Eddie Lampert. In an effort to cut costs and turn the company around, Lampert began ordering underperforming stores nationwide to close.
In 2016, based on employee reviews from Glassdoor, 24/7 Wall St reported that Lampert was the most hated CEO in the US.
Lawsuits Over Congressional Subpoenas
In March 2019, the House Committee on Oversight and Reform opened an investigation into Trumps finances, and issued a subpoena for ten years of his tax returns. Trump later sued the chairman of the committee, Rep. Elijah Cummings, seeking to quash the subpoena.
In April 2019, Trump sued Deutsche Bank, bank Capital One, his accounting firm Mazars USA, and House Oversight Committee chairman Elijah Cummings, in an attempt to prevent congressional subpoenas revealing information about Trumps finances. On May 20, 2019, DC District Court judge Amit Mehta ruled that Mazars must comply with the subpoena. Trumps attorneys filed notice to appeal to the Court of Appeals for the DC Circuit the next day. On May 22, 2019, judge Edgardo Ramos of the federal District Court in Manhattan rejected the Trump suits against Deutsche Bank and Capital One, ruling the banks must comply with congressional subpoenas.
Don’t Miss: How Many Times Has Trump Declared Bankruptcy
Eight Us Presidential Bankruptcies You May Have Missed
When we think of the office of president, we often think that only wealthy men can attain it. Barack and Michelle Obama have signed deals worth tens of millions of dollars, George W. Bush retired to his Texas ranch, Bill Clinton founded the Clinton Foundation, and Jimmy Carter still teaches Sunday school in Georgia. We have the idea that those who leave the office, and those who come to it, have little to worry about in terms of finances and comfort in their post-political years. However, while distinctly in the minority, at least eight presidents have experienced financial hardship and even presidential bankruptcies.