COLUMBUS, Ohio (WKBN) –- According to an exclusive report by Reuters, the company that owns the Southern Park Mall filed for chapter 11 bankruptcy protection Sunday night.
The Boardman mall’s parent company, Washington Prime, has its first hearing Monday.
A report released in March showed Washington Prime lost over $111 million in 2020.
It blamed the losses on the pandemic, causing the company to struggle financially and forcing it to close a number of its shopping centers nationwide, primarily in the Midwest.
Without shoppers milling daily in the malls, the company took a huge loss and accumulated debt.
According to the report, their rental income took a major hit due to the COVID-19 pandemic.
Representatives of the company told the news agency they’re currently restructuring finances and looking into the necessity of bankruptcy protection. However, the decision has not been finalized.
Currently, Washington Prime is operating under a forbearance agreement with bondholders and lenders. The agreement has already been extended several times and is now set to expire Monday night.
A Washington Prime spokesperson released a statement, saying throughout the chapter 11 process, they expect business as usual at its town centers. Their tenants, sponsors and employees will continue operating as normal.
Other malls around the country, like CBL & Associates Properties, have already filed for bankruptcy due to similar financial constraints.
Despite the concerns reported by the news agency, Boardman’s Southern Park Mall continues with a redevelopment plan.
The full details of Washington Prime’s bankruptcy filing are available online.