The Trump Group, owned by US President Trump, is facing the worst management challenges in decades, the Wall Street Journal (WSJ) reported on Tuesday (local time).
As the due date for repayment of debts exceeding $400 million (approximately 450 billion won) from the group is approaching, the business has recently been sluggish due to the aftermath of Corona 19, and overseas expansion of its business is also difficult.
In addition, investigations by the judicial authorities aiming at charges such as tax evasion by President Trump have also condemned his family business.
According to the WSJ, the Trump Group has owed more than $400 million in real estate development projects such as skyscrapers and golf courses, and the debt repayment date is expected to arrive at once in the next few years.
However, the value of these assets deteriorated when Manhattan, New York, where group-owned buildings were concentrated, was hit by the coronavirus outbreak.
Golf resort and hotel businesses are also sluggish due to reduced travel and economic downturn.
The fact that the rental rate at the Trump Tower in New York, where the Trump Group is headquartered, has fallen significantly since President Trump took office, symbolizes the group's decline in business.
Many lenders are hesitant to do business with President Trump, blocking further loans, the WSJ said.
Overseas expansion of the business is being discussed as a measure to overcome this financial crisis.
However, due to the Trump administration's tough protection trade policy, many trading partners have lowered the affinity for President Trump, and it is evaluated that this will act as a negative factor for overseas business as well.
China, which President Trump has been concerned about for a long time, is representative.
In China, hit by the US-China trade dispute, operators may be reluctant to do business with President Trump, the WSJ analyzed.
The newspaper said the Trump Group is currently pushing for the sale of some of its assets, including hotels in Washington and skyscrapers in New York and San Francisco to reduce their size.
In the meantime, criminal investigations by law enforcement authorities are adding to the group's burden.
Currently, the Manhattan District Prosecutor, led by Chief Prosecutor Cyrus Vance, is investigating President Trump for falsifying financial records and committing tax evasion.
New York State prosecutors, led by Attorney General Leticia James, are also investigating allegations that President Trump has inflated the value of his assets in order to obtain loans easily.
The WSJ said, "If President Trump retires in January next year, he will face the family business in the worst financial and legal difficulties in decades."
(Photo = Getty Image Korea)