“Strong balance sheets and sound operations are needed to see property companies through this period,” he added. “The bankruptcy shows that while things are now getting back to normal, many of the scars left by the pandemic have not fully healed,” said Neil Saunders, retail analyst and managing director at GlobalData. All three mall owners were hurt by some major tenants also filing for bankruptcy. Two other mall owners, CBL Properties and PREIT, both filed for bankruptcy last year and cited similar problems. Shifting consumer habits and the pandemic rattled the retail industry over the past year. Washington Prime, which warned this move was coming in recent regulatory filings, said it’s using Chapter 11 to “implement a comprehensive and consensual financial restructuring” to deleverage its nearly $1 billion in debt. Temporary closures and relaxation of rent to some of its tenants were the causes of the bankruptcy. (WPG) plunged as much as 55% in early trading. “During the financial restructuring, we will continue to work toward maximizing the value of our assets and our operating infrastructure.” “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 Lou Conforti. The Columbus, Ohio-based company filed for Chapter 11 late Sunday, saying Covid-19 “created significant challenges” and that the move is “necessary.” Washington Prime secured $100 million in new funding to support its day-to-day operations so it can “continue in the ordinary course without interruption.” Washington Prime Group, a major mall owner of more than 100 locations across the United States, filed for bankruptcy, citing pandemic-related shutdowns.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |