Washington Prime Group, the owner of the Northtown Mall in Blaine, has filed for bankruptcy, citing the impacts of the COVID-19 pandemic as the main cause.
Washington Prime, based in Columbus, Ohio, is a retail real estate investment trust that manages retail properties and leases space to tenants. Washington Prime has more than 100 malls and shopping centers across the United States, including Northtown Mall in Blaine and Maplewood Mall in Maplewood.
The Washington Prime Group said closures in the event of the COVID-19 pandemic have led the company and some of its subsidiaries to file voluntary relief petitions under Chapter 11 of the United States Bankruptcy Code in US court. United States bankruptcies for the Southern District of Texas, Sunday, June 13. .
âThe COVID-19 pandemic has created significant challenges for many businesses, including Washington Prime Group, making a Chapter 11 filing necessary to reduce the company’s outstanding debt,â Washington Prime Group said in a statement. communicated.
Despite filing for bankruptcy, the company said it will operate as usual at Northtown Mall and other Washington Prime Group retail properties.
âThroughout the Chapter 11 financial restructuring, we expect our downtown areas to continue to operate as usual, including the Northtown Mall, where our tenants, sponsors and employees will continue to operate as normal. focusing on providing enjoyable experiences to our customers, âa Washington Prime Group statement said.
Washington Prime Group enters Chapter 11 after signing a restructuring support agreement with a significant portion of its creditors.
The company said it will use Chapter 11 to implement a comprehensive corporate-level financial debt restructuring.
When Washington Prime Group announced that it had filed for bankruptcy, it said it had secured $ 100 million in new debtor-in-possession funds to support day-to-day operations during the Chapter 11 process and ensure that all operations business continues uninterrupted.
“The financial restructuring of the company will allow WPG (Washington Prime Group) to resize its balance sheet and position the company for success in the future,” Lou Conforti, CEO and Director of Washington Prime Group, said in a statement. âDuring the financial restructuring, we will continue to work to maximize the value of our assets and our operating infrastructure. The Company expects operations to continue in the normal course for the benefit of our customers, tenants, suppliers, stakeholders and colleagues. “
Washington Prime has listed $ 4.03 billion in assets and $ 3.47 billion in debt in court documents.