Trump's Debt-Ridden Casinos Go Bankrupt

08/10/2004 at 08:00 AM EDT

Trump's Debt-Ridden Casinos Go Bankrupt
Donald Trump
Sara Jaye/ABACA
The Apprentice star Donald Trump just announced plans for his own men's clothing label, but he's awash in red ink when it comes to another venture: Trump Hotels and Casino Resorts in Atlantic City.

On Monday night, the company decided to file for Chapter 11 bankruptcy protection – and Trump will effectively be fired as chief executive, The New York Times reports.

His 56 percent equity stake in the company, which is currently $1.8 billion in debt, will be shrunk to about 25 percent.

Because of his star status, Trump will retain his title as chairman. As for the business end of things, Trump and investment banker Credit Suisse First Boston will invest $400 million to help the struggling company pay down its overwhelming debt.

Trump, 58, says he looks forward to the "recapitalized company being a major player in the evolving gaming industry."

The next season of NBC's The Apprentice premieres next month.

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