These 2 Major Mall Chains Just Filed For Bankruptcy
The news puts about 130 malls around the U.S. in jeopardy of shutting down for good.
It's probably been quite some time since you've been shopping in a mall on a Saturday afternoon, and soon, you may not be able to head to yours anymore. The forces roiling the U.S. economy continue to affect every kind of business, and this week saw two major mall chains become the latest victims. According to CNN Business, the two chains of shopping malls in question, CBL Properties and PREIT, filed for bankruptcy this week—together, they're the combined owners of about 130 malls across the U.S. Read on to learn more and for another beloved business that's closing its doors, check out This Popular Gym Is Closing All of Its Locations.
While you may not be familiar with the names CBL and PREIT, it’s likely that you’ve shopped at the properties they own. Tennessee-based CBL operates nearly 100 malls in 25 states across the country, from Texas to Wisconsin and Pennsylvania to Illinois. Meanwhile, Pennsylvania-based PREIT’s mall locations are mostly on the East Coast, spanning from Virginia to Rhode Island.
Both mall chains have previously warned that their financial situations were becoming perilous as their largest tenants were going bankrupt. From J.C. Penney to Lord & Taylor, many major department stores that are the tentpoles of malls have filed for bankruptcy this year. The situation peaked in July with common brand tenants including Brooks Brothers, Lucky Brand, and more also filing for Chapter 11.
Along with uncollected rents from existing retailers, declining customer footfall and growing debt, the situation has become untenable for both CBL and PREIT. It's estimated that CBL is carrying liabilities of between $1 billion and $10 billion. While in Chapter 11, both groups will continue operating as they undergo restructuring. In a statement, a spokesperson for PREIT said that they hoped to "recapitalize the business and extend the company's debt maturity schedule," stressing that they had the “overwhelming support” of lenders. Read on for more stores that are closing due to the pandemic, and for other closures due to COVID, check out Your Dunkin' Donuts Could Be Closing for Good by the End of the Year.
Read the original article on Best Life.
Lord & Taylor
This iconic department store announced in August that it had filed for Chapter 11 bankruptcy and would be going out of business. However, Lord & Taylor's economic hardships predated the pandemic: The chain was sold to Le Tote in 2019, but it was not enough to keep the company alive once COVID hit. And for another popular place that's leaving the States, check out This Cult Favorite Store Is Closing All U.S. Locations.
In September, beloved New York-based department store Century 21 filed for bankruptcy, revealing all 13 locations would be closing for good. Century 21 co-CEO Raymond Gindi said in a statement that, due to COVID, the company has "no viable alternative but to begin the closure of our beloved family business." And for another shopper's paradise that's winding down, check out This Popular Clothing Chain Just Announced It's Closing 250 Stores.
After 112 years, Stein Mart announced in August that it would be shutting down its 280 locations across 30 states. The popular discount store filed for Chapter 11 bankruptcy due to "the combined effects of a challenging retail environment coupled with the impact of the coronavirus," Stein Mart CEO Hunt Hawkins said in a statement. And for more useful content delivered straight to your inbox, sign up for our daily newsletter.
Pier 1 Imports
Your favorite spot for curated home goods filed for bankruptcy in mid-May. The stores wound down with major going-out-of-business sales over the summer, before shuttering all of their 540 stores by the end of October. And for another longtime retail love that's in danger, check out This Iconic Children's Brand Is Closing Stores Nationwide.