It seems The Donald is having a hard time holding onto his management team this year.
Trump Entertainment Resorts was falling in Tuesday trading after the casino operator announced that its Chief Financial Officer Dale Black will resign from his post effective December 14.
Trump’s stock, already trading at its lowest price year-to-date, dropped another 28 cents, or 5.7%, to USD 4.64, in Tuesday midday trading.
Analysts believe that Black’s departure has been anticipated since former Chief Executive James Perry left the company back in July. Adam Steinberg of Morgan Joseph said Black will likely follow Perry to Isle of Capri Casinos, where Perry accepted a position on the board of directors in mid-July after „retiring“ from Trump.
Steinberg believes that Trump will choose a replacement soon. Two solid candidates include Eric Hausler, Trump’s Senior VP of Development, and John Burke, the company’s treasurer. The analyst noted that management changes add to rising concerns about the company, which has been suffering recently from increased competition in Pennsylvania and New York.
Trump Entertainment Resort’s stock soared earlier this fall when an anonymous source told the Newark Star-Ledger that Cordish a Baltimore-based private real estate firm, was considered buying at least one of the three Trump casinos in Atlantic City, N.J. Cordish currently owns a retail shopping center called „The Walk,“ which is worth USD 110 million and is conveniently located just outside Trump Plaza Hotel and Casino. (See: Donald Redux)
While the deal seemed promising, Cordish reportedly backed out of the negotiations after its financial backer, Goldman Sachs, refused to move forward.
Analyst Steven Kent of Goldman Sachs noted at the time that Trump’s resorts might be unattractive to potential buyers due to weak sales. Like Steinberg, Kent noted that Atlantic City’s casinos have taken a hit from rising competition in the mid-Atlantic region as well as the partial smoking ban.