Trump Company Records Decrease In Revenue Due To COVID-19

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Former US President Donald Trump’s Trump Organization recorded a drop in revenue in 2020 due to the outbreak of COVID-19, The Wall Street Journal reported on January 22.

According to the Office of Government Ethics (OGE) of the United States, the revenues of some properties owned by the company fell by almost 40%, further declining the revenue of some of the company’s profitable properties.

According to data for 2020 and the beginning of 2021, revenue, in particular, of the key facility – the Trump International Hotel in Washington DC – dropped to about $ 15 million from more than $ 40 million in 2019.

Also, the Trump National Doral Golf Club in Miami recorded revenues of about $ 44 million, which is more than 40% lower compared to 2019.

In general, according to the material, Trump’s business revenue amounted to $ 278 million for the reporting period, compared to $ 446 million in 2019. The publication predicts the likely deterioration of the situation for the Trump Organization in the coming months.

Meanwhile, the manager of the family company, Eric Trump, who took office after his father took over as president of the United States, said the family business is in good financial health. According to him, the brand is one of the most famous in the world.

Eric Trump explained the drop in revenue of some properties with quarantine measures, which negatively affected hotel operators across the country.

He noted that the company began to cut costs in proportion to the reduction in revenue at the very beginning of the pandemic. Golf clubs, for example, have performed well as clients have chosen outdoor activities in the face of the pandemic.

Trump Jr. also said the Trump Organization was profitable in 2020, but did not provide details.

However, the Trump Organization also has to contend with a significant debt burden – the company has more than $ 400 million to pay off debt in the next few years, and debt refinancing could pose difficulties as longtime business lenders, including Deutsche Bank AG, try to distance themselves from the former American president.

But, according to Eric Trump, the company’s debt burden is negligible compared to its assets.

Some of the company’s partners and clients said they would sever ties with Trump following the Capitol riots.

On January 13, New York announced the termination of all contracts with the Trump Organization. City officials said they viewed the January 6 riots in Washington as “incitement to mutiny against the United States government.” It was clarified that the New York authorities will notify the firm that the city will begin the process of canceling its agreements to operate the carousel in Central Park, two popular ice rinks and the Ferry Point golf course, writes.

Morgan, Lewis & Bockius, who defended the interests of the company in connection with a criminal investigation by the New York authorities, also informed about the termination of work with the company.

The Professional Golfers Association of the United States (PGA) has also canceled the contract to host the 2022 championship at Trump-owned golf courses in New Jersey.

On January 6, the American Congress was supposed to approve the results of the presidential election, according to which Democrat Joe Biden became the new head of state. The meeting was interrupted due to the fact that supporters of Trump broke into the Capitol and caused riots.

The day before, the head of the White House announced a rally in Washington.

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