Owner of Northwoods Mall files for bankruptcy
NORTH CHARLESTON, S.C. (WCSC) - The company that owns Northwoods Mall in North Charleston has filed for bankruptcy. On Monday, CBL Properties announced that they have filed for Chapter 11 bankruptcy.
The company based in Tennessee, said that uncollected rents from retailers, declining customer traffic and mounting debt of about $1 billion were the factors in its decision to file for bankruptcy.
Company officials said they plan to recapitalize the company, including “restructuring portions of its debt.”
According to a company press release, through this process, the operations and businesses owned by the company will continue as normal.
In addition to Northwoods Mall, the company also owns the Coastal Grand Mall in Myrtle Beach which opened in 2004, and WestGate Mall in Spartanburg. CBL Properties owns about 100 malls located in 26 states.
In addition, the Pennsylvania Real Estate Investment Trust, or PREIT, also filed for Chapter 11 protection in Delaware. PREIT owns the Magnolia Mall in Florence. The company also said it will continue to pay all vendors suppliers and employees during the course of its Chapter 11 proceedings.
According to a report by CNN, both CBL Properties and PREIT have previously warned they were in perilous positions because some of their largest tenants, including JC Penney, Tailored Brands and Ascena Retail Group, have filed for bankruptcy this year.
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