Donald Trump’s Canadian hotel project went bankrupt only days before last year’s election, and new ownership just announced that the Toronto Trump Tower will be no more. It’s the same Toronto project which Putin controlled VnesheconomBank invested $850 million dollars into erecting with a Russian-Canadian developer.
Now, Bloomberg reports that privately held JCF Capital ULC was willing to pay quite a lot of money for the right to ditch the Trump brand name on their Toronto hotel forever:
While no breakup fee was disclosed, the amount was at least $6 million, according to a person with knowledge of the matter. Signage may be removed from the 65-story tower as soon as Aug. 1, said the person, who asked not to be identified discussing confidential details.
JCF Capital acquired the tower with the Trump brand and agreements in place last year from former owner Talon International, the developer run by Russian-Canadian billionaire Alex Shnaider.
The tower was a tough sell under its Trump name: Talon struggled to sell the building after defaulting on its 2007 loan, and when JCF Capital acquired the loan on the property from lender Raiffeisen Bank International AG and launched a sale process for the building, it garnered no bids aside from its own.
No wonder the Trump Organization announced last year that they’re planning to rebrand the family’s hotels Scion, after buying the failed Japanese car company’s trademarks.
After the election, President Trump’s Organization decided to leverage the situation and announce a 100 hotel expansion for the family’s brand.
The troubled Russian-financed Trump project also drew the ire of disgruntled buyers who sued after claiming they’d been lied to [sic] by the project’s developers.
Trump didn’t own the project, but sold his name and used to manage the failed hotel for and annual fee, until the contract terminated today.
Previously, Canada’s high court rescinded the sale of one unit and ruled that disgruntled customers of Trump’s failed hotel were allowed to sue for relief.
Trump Tower Toronto was over budget and delivered late, sued for ripping off consumers, took in tons of Russian cash, went bankrupt and ultimately The Donald had to be paid to go away and take his tarnished name with him.
Grant Stern is the Executive Editor of Occupy Democrats and published author. His new Meet the Candidates 2020 book series is distributed by Simon and Schuster. He's also mortgage broker, community activist and radio personality in Miami, Florida., as well as the producer of the Dworkin Report podcast. Grant is also an occasional contributor to Raw Story, Alternet, and the DC Report, and a senior advisor to the Democratic Coalition