Last week’s storming of the Capitol by a pro-Trump gang will put pressure on President Trump’s family business at a time when some of his most lucrative assets were already suffering from the pandemic and facing impending debt.
One of the Trump Organization’s most loyal partners, German lender Deutsche Bank AG, is distancing himself from the president’s affairs and is unlikely to lend him any more money, says a person familiar with the case. The bank has lent the Trump organization more than $ 300 million due in 2023 and 2024, forcing the company to refinance or pay off the debt by potentially selling assets.
The other risk to the Trump organization is that some customers will stop patronizing its businesses, especially the hotels and golf courses. The company has attempted to sell its Washington, DC hotel, but the pandemic made buyers wary. The hotel was popular with Mr. Trump supporters and organizations trying to seek the president’s favor. Things were already expected to diminish there once Mr. Trump leaves office.
The Trump Organization’s golf courses and resorts are particularly important, accounting for nearly half of the company’s annual revenue. The courses are closely associated with the president and have used his name to attract clients in a weak golf market. If the courses struggle to attract and retain members, it would weigh on the Trump organization in general.
On Sunday, PGA of America said it was ending an agreement to hold the PGA Championship at the Trump National Golf Club Bedminster in New Jersey in 2022, citing the risk of its brand being tied to Mr. Trump. The Trump organization said the PGA’s decision was a “breach of a binding contract.”