Hillary Clinton mocked Donald Trump’s business failings in a major speech arguing that the presumptive Republican nominee would be disastrous for the economy.
"He’s written a lot of books about business. They all seem to end at Chapter 11," Clinton quipped, adding. "He bankrupted his companies not once, not twice, but four times."
We rated a similarly worded claim from Trump’s former primary rival Carly Fiorina Mostly True, because it’s not accurate to say Trump is solely to blame. (For the record, Trump doesn’t deny the charge and instead argues it was a smart business decision.) At the time, we found four bankruptcies, but since then, we’ve found two more for a total of six. So Clinton was right that Trump bankrupted companies four times, and she could have offered a higher count as well.
Let’s go through them one by one.
Bankruptcy No. 1: The Trump Taj Mahal, 1991
Trump’s first bankruptcy may have hit the businessman, personally, the hardest, according to news reports.
He funded the construction of the $1 billion Trump Taj Mahal casino in Atlantic City, N.J., which opened in 1990, primarily with junk bonds at a whopping 14 percent interest. A year later, the casino was nearly $3 billion in debt, while Trump had racked up nearly $900 million in personal liabilities. So Trump decided to file for Chapter 11 reorganization, according to the New York Times.
As a result, Trump gave up half his personal stake in the casino and sold his yacht and airline, according to the Washington Post.
Bankruptcy No. 2: Trump Castle, 1992
Within a year of his first Chapter 11 filing, Trump found himself in bankruptcy court again for Trump Castle, which opened in 1985. It was his "weakest gambling hall," according to the Philadelphia Inquirer, and ironically faced competition from Trump Taj Mahal. In March 1992, the Castle filed a prepackaged bankruptcy plan, and Trump gave up his 50 percent share in the casino for lower interest rates on $338 million worth of bonds.
Bankruptcy No. 3: Trump Plaza and Casino, 1992
The Trump Plaza Hotel and Casino in Atlantic City, which opened in 1984, declared bankruptcy at the same time as the Castle. A $210 million joint project of Trump’s and Harrah’s, the casino had racked up $250 million in debt by 1992, after a staggering 80 percent decline in cash flow. So Trump Plaza filed for prepackaged bankruptcy that spring as well.
Bankruptcy No. 4: Plaza Hotel, 1992