Last week’s invasion of the Capitol by a pro-Trump mob will increase pressure on President Trump’s family businesses 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, the German bank Deutsche Bank AG, is distancing itself from the president’s business and is unlikely to lend him any more money, said a person familiar with the matter. The bank lent the Trump Organization more than $ 300 million maturing in 2023 and 2024, forcing the company to refinance the debt or pay it off by selling assets.
The other risk for the Trump Organization is that some customers will stop sponsoring their businesses, in particular their hotels and golf courses. The company tried to sell its hotel in Washington, DC, but the pandemic left buyers suspicious. The hotel was popular with Trump supporters and with organizations trying to get the president’s favor. Business should already decline there when Trump leaves office.
The Trump Organization’s golf courses and resorts are particularly important, accounting for almost half of the company’s annual revenue. The courses are closely linked to the president and have used his name to attract customers in a weak golf market. If courses struggle to attract and retain members, it will weigh on the Trump Organization as a whole.
On Sunday, the PGA of America said it was terminating an agreement to hold the 2022 PGA Championship at the Trump National Golf Club Bedminster in New Jersey, citing the risk of its brand being affiliated with Trump. The Trump Organization said the PGA decision was “a breach of a binding contract”.