The Owner Of Two Colorado Malls Has Declared Bankruptcy
Washington Prime Group, the owner of Town Center at Aurora and Mesa Mall in Grand Junction, has filed for Chapter 11 bankruptcy protection in a Texas federal court.
The company cited the COVID-19 pandemic as the primary factor behind its unsteady financial situation.
“The COVID-19 pandemic has created significant challenges for many companies, including Washington Prime Group, making a Chapter 11 filing necessary to reduce the Company’s outstanding indebtedness,” a news release said.
A spokesperson for the Town Center at Aurora, located in central Aurora, said the bankruptcy will have no immediate impact.
“Throughout the Chapter 11 process, we expect business as usual at our town centers, including Town Center at Aurora, where our tenants, sponsors and employees will continue operating as normal, with a focus on providing enjoyable experiences for our guests,” a spokesperson said.
Mesa Mall General Manager Paul Petersen did not immediately return a request for comment to CPR News. Washington Prime Group told its tenants day-to-day operations will likely not be affected.
According to a statement, the Ohio-based mall real estate investment firm has secured $100 million in “debtor-in-possession financing” to help with business operations during the Chapter 11 process.
Major retailers — many of which operate primarily in malls — have filed for bankruptcy due to financial difficulties during the pandemic, including J. Crew, J.C. Penny, and GNC.
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