By Bill Galluccio
Photo: Getty Images
While many of the coronavirus-related emergency measures have been lifted across the country, shopping malls are still struggling despite the increased demand and foot traffic. Washington Prime Group, one of the nation s largest mall owners, filed for chapter 11 bankruptcy, citing the temporary closures and reduction in rent payments from tenants.
Washington Prime Group owns over 100 shopping malls across the United States but has amassed nearly $1 billion in debt.
The company said that it has secured $100 million in new funding that will allow it to operate without interruption during the bankruptcy proceedings. The company s financial restructuring will enable Washington Prime to right-size its balance sheet and position the company for success going forward, said CEO
Lima Mall owner files for bankruptcy protection
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Washington Prime Group, owner of more than 100 malls in the U.S., filed for bankruptcy on Sunday, citing significant challenges brought on by the COVID-19 pandemic.
As CNN reported, the company filed for Chapter 11, calling the move necessary. The mall owner secured more than $100 million in new funding in order to maintain its day-to-day operations and continue in the ordinary course without interruption.
Two other mall owners CBL Properties and PREIT filed for bankruptcy last year, citing similar issues as Washington Prime Group.
ADVERTISEMENT The company s financial restructuring will enable Washington Prime to right size its balance sheet and position the company for success going forward, CEO Lou Conforti reportedly said. During the financial restructuring, we will continue to work toward maximizing the value of our assets and our operating infrastructure.
Owner of Lindale Mall Files For Bankruptcy
The pandemic over the last year has made things difficult for businesses around the country and malls have been among the hardest hit. A business model that had already begun to struggle in recent years, malls have fallen on very difficult times. Those problems were exacerbated by tenants who were unable to pay rent because of the huge downturns in business caused by the pandemic. Unfortunately, the owner of Lindale Mall is no different.
Lindale Mall s owner, Washington Prime Group, has announced that they ve filed for Chapter 11 bankruptcy. That means the company wants to restructure its debt, but wouldn t end up paying the entire amount if their bankruptcy filing is approved. The good news is the Gazette reports that things at Lindale Mall shouldn t change. Lindale will be staying open during the bankruptcy process.
Washington Prime Group, a mall REIT, has filed for Chapter 11 thanks to 1) online-shopping trend and 2) Covid fear.
(Bloomberg)
Washington Prime Group Inc., a real estate investment trust that operates enclosed malls and strip centers across the U.S., filed for bankruptcy after the Covid-19 pandemic drove away shoppers.
The Chapter 11 filing in Houston lets Washington Prime stay in business while it restructures its debts in a deal that it reached with certain creditors, according to the bankruptcy petition. The company, with assets estimated at $4 billion and debt of almost $3.5 billion, secured a bankruptcy loan of up to $100 million to fund operations during court proceedings.
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