Find in the news:
BY COUNTRY

A large shopping mall owner is facing bankruptcy



Owner and operator of dozens of American malls, the company PREIT could get only half of all of its rental payments from retailers for the second quarter.
Shopping mall - pexels

Store closures and several bankruptcies due to the pandemic have had the most negative impact on the retail industry. Simultaneously, shopping malls were one of the weakest links, which partially waived rent collection and partly made substantial concessions to tenants. Simultaneously, malls often accumulate their debt, and this imbalance puts many shopping centers on the verge of survival. 

An American operator of large shopping centers, the investment fund PREIT has now found itself in a difficult situation. According to the financial company Jefferies, in the second quarter of PREIT, only 53% of rent payments were due. The company's revenue in the second quarter decreased by about 30% compared to last year. At the same time, the company's accumulated debt may eventually lead to bankruptcy. 

PREIT received a notice from Wells Fargo with a warning for its failure to meet loan obligations. The notification followed an agreement concluded earlier in October, which involved restructuring PREIT's debt to 80% of its creditors. 

The company pledged to continue negotiations with tenants and creditors but promised that if the financial situation fails to improve by October 18. Bankruptcy proceedings will be filed under Chapter 11 of the U.S. Bankruptcy Code. PREIT intends to challenge the kind of problem concerning the financial organization and insists that there was no breach of the deal. 

The main reason for the financial difficulties of PREIT was the pandemic; however, the operator of malls noted a gradual decline of income during the last five years. The reason is the departure of large tenants such as Sears, J.C. Penney, and Macy's, and an overall reduction in retail trade in shopping centers. Thus, the pandemic has only intensified many trends in retailing, which, in turn, has exacerbated financial tensions in this area.

More about shopping malls in the USA



Sep 20, 2021, Japan:
The top floor of the world's most popular Japanese department store now has its cafe.
Sep 20, 2021, USA:
The owners of the American Dream decided not to wait until the luxury "Avenue" was at least half full.
Sep 17, 2021, USA:
The retailer is ready to invest in retail development in the U.S. market, which was hit by the crisis.
Sep 17, 2021, Spain:
Worldwide sales are recovering, both at retail and through online channels.
Sep 15, 2021, France:
The total area of the new retail space in the Madeleine area will be 724 square meters.
Sep 14, 2021, USA:
The 30-day subscription, which allows you to buy one taco a day, costs $5 and $10.
Friend
and Follow
Arkadia GLA:1 184 030 SF
ADDRESS: Aleja Jana Pawla II 82, 00-175
Poland . Warsaw
Arkadia
212 Istanbul Power Outlet GLA:753 474 SF
ADDRESS: Mahmutbey Merkez Mah. Taşocağı Cad. No:5 Bağcılar  /  İstanbul
Turkey . Istanbul
212 Istanbul Power Outlet
Mall of Scandinavia GLA:1 087 155 SF
ADDRESS: Evenemangsgatan 11 169 56 Solna
Sweden . Stockholm
Mall of Scandinavia
Madrid Xanadú GLA:1 184 030 SF
ADDRESS: Autovía A5, salidas 22 y 25 - 28939
Spain . Madrid
Madrid Xanadú


Edit text

Dear visitor!
If You wish to add appropriate information to this description, please make changes in the text below and they will take effect after being verified by Malls.com administrator.

SAVE CHANGES
ADD PHOTO

Dear visitor!
If you desire to add more photos to this description, please upload them and they will appear on the page after being verified by Malls.com administrator.

CHOOSE PHOTOS
SAVE CHANGES
Sign in Malls.com
Sign in please, if you already have an account

Registration



Error filling
Error filling
Error filling
Error filling
Thank you!
You will receive e-mail with registration data shortly. In email you'll find link, confirm your account by clicking on it, please.

Malls.com Team
Thank you for message!
In the near future you will be contacted the manager
for further details.

Malls.com Team
Good mall, bro!
In the near future you will be contacted the manager
for further details.

Malls.com Team
We are dissatisfied with you :-(
In the near future you will be contacted the manager
for further details.

Malls.com Team

Write to us