Washington Prime Group owns malls across 100 US locations and has filed for Bankruptcy amidst the pandemic crisis and persistent shutdown of businesses.
Washington Prime, a Columbus, Ohio-based company, charged for Chapter 11 last weekend, stating the company is facing stern challenges owing to business discontinuity amidst the pandemic.Therefore, it is seriously considering Bankruptcy as the immediate logical decision.Washington Prime Group successfully acquired a new funding worth $100 million to support the day-to-day operations without any interruptions.
Washington Prime CEO, Lou Conforti shared that the final restructuring of the company will enable the Ohio-based company to right-size the balance sheet and position the company for an ongoing success path. The final restructuring process will be focused on maximizing the asset value and the company’s operating infrastructure.Washington Prime Group’S shares were dipped to 55% during the last trading, and the stock has fallen by 60% this year.
Leniency in rents and discontinued businesses are considered major factors to have led to the company’s Bankruptcy.Pandemic and changing customer habits significantly rattled the retail sector over the last year, with two other mall owners facing similar problems, including CBL Properties (CBLPRD), and PREIT (PEI). All three major mall owners were facing major disruptions, with many tenants filing for Bankruptcy.