By Madelyn Edwards
(DALLAS-FORT WORTH, Texas) Washington Prime Group, operator of the Irving Mall, The Shops at North East Mall in Hurst and Richardson Square, has filed for Chapter 11 bankruptcy on Sunday, The Dallas Morning News reports.
In February, Washington Prime didn’t pay a $23.2 million semi-annual interest payment, which caused lenders to make a forbearance agreement that was extended multiple times. The company filed in U.S. Bankruptcy Court in Houston with assets totaling about $4 billion and debt of nearly $3.5 billion. Chapter 11 allows Washington Prime to restructure and continue operating the shopping centers.
The company also operates 101 malls and strip centers, 13 of which are in Texas, such as Longview Mall, Fairfield Town Center in Houston, Sunland Park Mall in El Paso, Rolling Oaks Mall in San Antonio, Palm Crossing in McAllen, Wolf Ranch in Georgetown, and four near Austin: The Shops at Arbor Walk, The Arboretum, Gateway Centers and Lakeline Plaza in Cedar Park.
Washington Prime’s malls and shopping centers have been affected by the COVID-19 pandemic, which has led to empty malls and decreases in shopper traffic. Some malls are recovering, but for others, the pandemic has sped up the process of decline.
The Dallas Morning News reports that for many malls, appraisals have dropped below the value of the loans. Because of that, refinancing is less possible, and extensions on maturity dates are being requested from lenders instead.