COLUMBUS, Ohio (KCAU) – The company that owns and manages the Southern Hills Mall has filed for bankruptcy.
According to a press release on Washington Prime Group’s website, they have filed for Chapter 11 Bankruptcy in the United States Bankruptcy Court for the Southern District of Texas.
The company has received $100 million in debtor-in-possession financing for day-to-day operations.
“The Company’s financial restructuring will enable WPG to right size its balance sheet and position the Company for success going forward. During the financial restructuring, we will continue to work toward maximizing the value of our assets and our operating infrastructure. The Company expects operations to continue in the ordinary course for the benefit of our guests, tenants, vendors, stakeholders and colleagues,” said CEO and Director of Washington Prime Group Lou Confort.
Washington Prime Group cites the pandemic for creating a challenging time for most businesses and companies.
The spokesperson for the Washington Prime Group stated operations at the Southern Hills Mall should not be impacted at this time due to the filing.
“There will be no impact to operations at Southern Hills Mall. The COVID-19 pandemic has created significant challenges for many consumer-facing companies, including Washington Prime Group. The Company has determined that the Chapter 11 path is the most effective next step to resolve the Company’s outstanding indebtedness as we emerge from the pandemic. Throughout the Chapter 11 financial restructuring, we expect business as usual at Southern Hills Mall, where our tenants, sponsors and employees will continue operating as normal, with a focus on providing enjoyable experiences for our guests,” reads the statement by Washington Prime Group.
The full press release about the bankruptcy filing can be found on the company’s website.