Economy

The owner of the Washington Prime mall is reportedly preparing to file for bankruptcy

The owner of the Washington Prime mall is reportedly preparing to file for bankruptcy

Louis Conforti, CEO of Washington Prime Group, on CNBC’s Mad Money.

Source: CNBC

Owner of an American shopping center Washington Prime Group Preparing to file a potential Chapter 11 bankruptcy protection file, with the passage of time before the company defaulted on payment after it missed paying interest on its debts, Bloomberg reported Thursday.

Last month, Washington Prime missed a $ 23 million interest payment and said it would enter a 30-day grace period to continue negotiations with lenders.

Bloomberg said those talks have since faltered, citing conversations with people familiar with the matter. However, Bloomberg said the plan to pursue bankruptcy could change, if Washington Prime is able to make progress with its lenders or if its grace period is extended.

A company spokesman declined to comment on the report.

The Real Estate Investment Fund, based in Columbus, Ohio, was formed in May 2014 after the separation of the largest mall owner in the United States. Simon Real Estate Group. It continued to grow its portfolio of malls when it acquired the Glimcher Realty Trust in January 2015.

Washington Prime currently operates about 100 malls across the country, many of which are considered Class B and C, meaning that it generates fewer sales per square foot of A-rated assets. These characteristics came under greater pressure during the Covid pandemic, as fewer ventured out. People go out of the house to shop. When they do, they are likely choosing outdoor malls rather than indoor malls.

And with a number of retail, restaurant and entertainment tenants requesting a rent exemption or more locations to close, mall owners have struggled to fulfill their own obligations. This pressure has already pushed some to the brink of bankruptcy and bankruptcy.

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Last November, two other mall owners, CBL and the Pennsylvania Real Estate Investment Trust, Filed for Chapter 11 Bankruptcy Protection. The latter has since appeared.

Washington Prime shares fell more than 45% midday Thursday. The stock is down more than 80% from a year ago. Washington Prime has a market cap of approximately $ 71 million.

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