Major New York Mall Owner Files For Bankruptcy
A major New York mall owner filed for bankruptcy, blaming pandemic-related shutdowns.
On Sunday, Washington Prime Group, a company that owns over 100 malls across the United States, filed for Chapter 11. The company said the COVID-19 pandemic "created significant challenges" for the mall owner making it "necessary" to file for bankruptcy.
Washington Prime Group adds the company was able to secure $100 million in new money debtor-in-possession financing from the Consenting Creditors to support day-to-day operations during the Chapter 11 process and ensure that all business operations continue in the ordinary course without interruption.
“The Company’s financial restructuring will enable WPG to right size its balance sheet and position the Company for success going forward. During the financial restructuring, we will continue to work toward maximizing the value of our assets and our operating infrastructure. The Company expects operations to continue in the ordinary course for the benefit of our guests, tenants, vendors, stakeholders and colleagues," CEO and Director of Washington Prime Group Lou Conforti stated.
In New York, Washington Prime Group owns and operates the Jefferson Valley Mall in Yorktown Heights, Westchester County and Chautauqa Mall in Lakewood. In New Jersey, the company owns and operates Brunswick Square Rockaway Commons and Rockaway Town Court.