The assault on the Capitol last week by a pro-Trump mob will increase the pressure on President Trump’s family business at a time when some of his most profitable assets were already suffering from a pandemic and facing approaching debt payments.
One of Trump’s most loyal partners, German creditor Deutsche Bank AG, is moving to distance himself from the president’s business and is unlikely to lend him more money, says a person familiar with the matter. The bank has lent the Trump organization more than $ 300 million, which will mature in 2023 and 2024, forcing the company to refinance the debt or pay it off through the potential sale of assets.
The other risk for the Trump organization is that some customers stop owning its business, especially hotels and golf courses. The company tried to sell its hotel in Washington, DC, but the pandemic made buyers wary. The hotel was popular with supporters of Mr. Trump and organizations seeking to favor the president. The business was already expected to decline once Mr. Trump left office.
Trump’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 customers to a weak golf market. If classes are struggling to attract and retain members, it would weigh on the Trump Organization in general.
On Sunday, the PGA of America said it was terminating an agreement to host the 2022 PGA Championship at Trump National Golf Club Bedminster in New Jersey, citing the risk of its brand being affiliated with Mr. Trump. The Trump organization said the PGA’s decision was a “breach of a binding contract.”