The same month, Simon Property Group indicated that it would allow two malls, including the Mall at Tuttle Crossing in Dublin, to fall into bankruptcy. Washington Prime joins a growing list of shopping center owners to struggle during the pandemic. In November, two companies, CBL Properties and PREIT, which together own 130 shopping centers, filed for Chapter 11. "Many retailers had no choice but to go to landlords and renegotiate payments, and landlords had little choice but to accept those." "Apparel and accessory sales were down 27% last year," Kohan said. Malls' dominant tenants – apparel and accessories stores – in particular suffered in the pandemic because people had little need for new clothes.
Washington Prime's rent revenue fell from $633.6 million in 2019 to $506.7 million in 2020, according to company filings. Crew, Pier 1, Aldo and GNC.Ĭolumbus retail companies: Victoria's Secret headquarters to stay in Columbus: What we know about L Brands spin-off
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Like other mall operators, Washington Prime saw its revenue hammered last year by tenants who were unable to pay full rent or simply closed during the pandemic, as shoppers turned to online instead of in-person purchases. Dozens of retailers filed for Chapter 11 in 2020, many of them mall standards such as Brooks Brothers, J.
Pandemic hurt as shoppers turned to online purchases "Keep in mind that bankruptcies allow businesses the opportunity to restructure for long-term success, so while it’s not great, it may be the best way for the business to move forward," she said. Kohan, a professor of retail at Syracuse University's Whitman School of Management. In addition, Washington Prime Group and SVPGlobal anticipate an equity offering of $325 million as part of the restructuring.īankruptcy may be the best step forward for Washington Prime, especially since it has already reached agreements with most of its creditors, said Shelley E. The company said its restructuring agreement with its creditors, led by its largest, SVPGlobal, allows it to deleverage its balance sheet by $950 million. In its bankruptcy filing in Texas, Washington Prime listed assets of $4.03 billion and debts of $3.47 billion. The company expects operations to continue in the ordinary course for the benefit of our guests, tenants, vendors, stakeholders and colleagues.” "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 WPG to right size its balance sheet and position the company for success going forward," said Washington Prime CEO Lou Conforti in a news release. In addition to Polaris Fashion Place, the company owns eight Ohio centers: Indian Mound Mall in Heath the Mall at Fairfield Commons in Beavercreek Dayton Mall New Towne Mall in New Philadelphia Lima Mall and Lima Center Great Lakes Mall in Mentor and Southern Park Mall in Youngstown. Troubles at Polaris: After Polaris opens sports complex Fieldhouse USA, company sues mall over $150M in taxes Washington Prime Group also owns Indian Mound Mall and the Mall at Fairfield Commons "Washington Prime Group’s guests, retailers and business partners can expect business as usual at all of the company’s retail town centers throughout the proceedings," the company said. Washington Prime noted that it had received $100 million in financing from its creditors to support daily operations at its centers, which are concentrated in the Midwest, East Coast and Florida. The company said restructuring its debt would allow it to "strengthen its business and operations going forward." Washington Prime said it has reached agreements with creditors who hold 73% of the company's secured debt. Retail: Columbus retail recovers from pandemic, though uncertainty remains
"The COVID-19 pandemic has created significant challenges for many companies, including Washington Prime Group, making a Chapter 11 filing necessary to reduce the company’s outstanding indebtedness," the company said in a news release. Washington Prime filed Chapter 11 late Sunday, after struggling for more than a year with a pandemic that crushed mall revenue and traffic. Washington Prime Group, the Columbus-based owner of Polaris Fashion Place and 102 other shopping centers, has filed for bankruptcy.
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