Louis Conforti, CEO of Washington Prime Group, at CNBC’s Mad Money.
The owner of the American shopping center Washington Prime Group is preparing to file for protection against bankruptcy under Chapter 11, and the time expires before the company fails after it failed to pay interest on its debt, Bloomberg reported on Thursday.
Last month, Washington Prime missed $ 23 million in interest and said it would enter a 30-day grace period to continue negotiations with creditors.
But since then, those talks have fluctuated, Bloomberg reported, citing conversations with people familiar with the matter. However, the bankruptcy plan could change, Bloomberg said, if Washington Prime succeeds in making progress with its creditors or if its grace period is extended.
A company spokesman declined to comment on the report.
The real estate investment trust, based in Columbus, Ohio, was established in May 201
Washington Prime currently operates about 100 malls nationwide, some of which are considered B- and C-rated, meaning they bring in fewer sales per square foot of an A-rated asset. greater pressure during the Covid pandemic, with fewer people daring to leave the house to shop. When they do, they most likely choose outdoor malls above closed malls.
And because a number of renters, restaurants and entertainment seekers want rent relief or close more space, mall owners are struggling to meet their own obligations. This stress has already pushed some off the edge and led to bankruptcy.
Last November, two other mall owners, CBL and the Pennsylvania Real Estate Investment Trust, filed for protection against bankruptcy under Chapter 11. The latter has since emerged.
Shares of Washington Prime fell more than 45% in the afternoon on Thursday. Shares are down more than 80% from a year ago. The Washington Prime has a market capitalization of approximately $ 71 million.