Majors

Mall Owner Washington Prime Group Files for Chapter 11

MajorsJun 17, 2021

Mall Owner Washington Prime Group Files for Chapter 11

The company is implementing a restructuring plan after struggling amid the COVID-19 pandemic.

Real estate investment trust Washington Prime Group has put a restructuring plan in place after filing for Chapter 11 bankruptcy protection last week.
Columbus, Ohio—Mall owner Washington Prime Group filed for Chapter 11 bankruptcy protection last week as COVID-19 continues to take a toll on shopping centers.
 
The real estate investment trust, which was spun-off from fellow mall owner Simon Property Group in 2014, owns open-air and enclosed shopping areas, with many locations in the Midwest.
 
Its estimated assets and liabilities both ranged from $1 billion to $10 billion, according to a filing in the United States Bankruptcy Court for the Southern District of Texas.
 
Rent collections stalled amid the pandemic as many of its retailer tenants filed for bankruptcy.
 
“The COVID-19 pandemic has created significant challenges for many consumer-facing companies, including Washington Prime Group. The company has determined that the Chapter 11 path is the most effective next step to resolve the company’s outstanding indebtedness as we emerge from the pandemic,” a company spokesperson said in an email to National Jeweler.
 
Business is expected to carry on as usual while the restructuring plan gets underway.
 
As part of its restructuring support agreement with creditors, led by SVPGlobal, the company secured $100 million of debtor-in-possession financing, a type of financing extended to companies in distress that is overseen by the lender and subject to court approval.

 Related stories will be right here … 

The agreement will reduce its debt level by nearly $950 million, the company said in a press release about the restructuring plan.
 
It is also considering a $325 million equity rights offering to pay down its debt.
 
“The company’s financial restructuring will enable WPG to right size its balance sheet and position the company for success going forward,” said Washington Prime Group CEO and Director Lou Conforti in a press release.
 
It was a rough year for mall owners as COVID-19 restrictions temporarily shuttered shopping centers. Mall owners CBL Properties and Pennsylvania Real Estate Investment Trust also filed for bankruptcy last year.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

FinancialsJul 30, 2021
Kering’s Jewelry Houses Rebound in H1

Boucheron and Pomellato performed especially well in the first half after expanding into the Asia-Pacific region.

SourcingJul 30, 2021
The Fura Marketing Council Will Debut in Las Vegas

The team behind the program, designed to help increase the share of the colored stone market, will be at AGTA GemFair and JCK Las Vegas.

CollectionsJul 30, 2021
Piece of the Week: K Kane’s Personalized Diamonds

The “Alphabet Diamond” collection levels up the initial jewelry trend.

Brought to you by
How to Build a Successful Multi-Generational Jewelry Business

RDI Diamonds CEO Michael Indelicato shares his advice for taking a family business to the next level.

SourcingJul 29, 2021
De Beers Owner Pumping $100M Into Sustainability Projects

Anglo American is donating the money to its Anglo American Foundation, which supports projects in countries where it mines.

Weekly QuizJul 29, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of July 26-30, 2021.
Take the Quiz
CollectionsJul 29, 2021
Simon G. Unveils New Collection Straight from the Vault

It features tourmalines that have been stashed away for more than a decade.

TechnologyJul 29, 2021
Retail In Depth: The Perfect Present

Fifth-generation jewelry retailer Marc Bridge and business partner Monica Chambers unwrap their new digital venture.

Brought to you by
3 Reasons Why You Should Start Appraising This Summer

Create appraisals with the Jewelry Appraisal Solution on the Zing by Jewelers Mutual Group® platform and leverage the expertise of Gemworld.

IndependentsJul 28, 2021
Estelle Hedaya, Full of Life and Loved by All, Laid to Rest

The funeral for Hedaya, the final victim identified in the Surfside condo collapse, took place Tuesday in her native Brooklyn.

×