These are the companies dumping the Trump Organization

Banks, brokerages and the Girl Scouts have quit president’s business

New York /
Jan.January 14, 2021 08:56 AM
Eric Trump and Donald Trump Jr. with President Donald Trump (Getty)

Eric Trump and Donald Trump Jr. with President Donald Trump (Getty)

The fallout for President Donald Trump and his family business after the Jan. 6 attack on the Capitol has not abated.

On Wednesday, the House of Representatives impeached Trump for a second time, setting the stage for a possible Senate trial in the coming weeks.

And a number of businesses and other organizations, from banks that lent to the president to the Girl Scouts, have cut ties with his family business, the Trump Organization. Even such longtime financial backers as Blackstone CEO Stephen Schwarzman condemned the president’s inflammatory language and the ensuing violence at the Capitol Building.

The Trump Organization — currently led by the president’s son, Eric Trump — was already facing headwinds before the attack on the Capitol. The company has more than $300 million in loans coming due in the next four years, according to the New York Times. Forbes pegged the company’s debt at $1 billion-plus. Thanks to pandemic-related closures and lockdowns, its resorts and golf courses laid off more than 1,300 employees in March and April.

The backlash to last week’s events may further stress the company’s finances — and it’s likely that more companies will seek to distance themselves from the business.

Here is a running list of the businesses that have cut ties with the Trump Organization:

Cushman & Wakefield

The commercial real estate brokerage, which handled office leasing at Trump Tower and 40 Wall Street in New York and retail leasing at the Trump Organization’s Chicago hotel, said Tuesday that it has “made the decision to no longer do business with The Trump Organization.” It’s unclear who will handle leasing at Trump properties going forward.

Fred Trump III, the president’s nephew, is a leasing director at the firm. Sources told Business Insider that he was recently asked to leave the company. He and his sister, Mary Trump, had challenged their inheritance from the president’s father, and Mary recently sued to revive that effort.

JLL

The brokerage dropped its involvement with the effort to sell President Donald Trump’s hotel in Washington, D.C., although it was unclear if the move was related to the violence at the Capitol on Jan. 6.

The Trump Organization had tapped JLL, headed by CEO Christian Ulbrich, to market the ground lease on the 263-key Trump International Hotel at 1100 Pennsylvania Avenue, which reports said could fetch around $500 million. Marketing, however, was put on hold in November after bids came in lower than expected.

Deutsche Bank

The German bank has been one of the Trump Organization’s main lenders over the years, providing $2 billion in loans, about $340 million of which is still outstanding. But it has reportedly been looking for an out for some time, and in December, the Trumps’ personal banker, Rosemary Vrablic, left the company. Now, according to the New York Times, the lender has decided it will no longer work with family, citing sources familiar with the bank’s thinking.

Girl Scouts of Greater New York

The New York-based branch of the youth organization wants out of its lease at 40 Wall Street, Business Insider reported. The group signed a 15-year lease in 2014, which would make exiting difficult.

“Leases are rock-solid contracts that require you to pay your rent over a period of time,” Meyer Last, a lawyer in Fried Frank’s real estate division, told the publication. “There’s no easy way to get out.”

City of New York

The Capitol incursion prompted the city to cancel its four contracts with the Trump Organization, which Mayor Bill de Blasio claims are worth $17 million a year. He did not mention that three of the contracts expire in April anyway. The company currently operates two ice-skating rinks and a carousel in Central Park, as well as a golf course in the Bronx.

Amanda Miller, a spokesperson for the Trump Organization, told the New York Times it would fight the city’s decision “vigorously.”

“The city of New York has no legal right to end our contracts and if they elect to proceed, they will owe the Trump Organization over $30 million,” she said in a statement. “This is nothing more than political discrimination, an attempt to infringe on the First Amendment.”

Signature Bank

Signature Bank said Monday that it would close President Trump’s personal bank accounts, which held about $5.3 million, the New York Times reported. In a statement, the bank also called for Trump’s resignation.

Additional reporting by Rich Bockmann, Erin Hudson and Keith Larsen.





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