NEW YORK (AP) — The owner for Valley View and more than 100 other malls for bankruptcy protection Monday, hurt by the coronavirus pandemic that has their tenants to permanently close stores or not pay rent. CBL Properties says its malls will remain open as they go through the bankruptcy process.
Even before the virus, malls have struggled to attract shoppers who are increasingly shopping online or elsewhere. But the pandemic forced many of them to temporarily close for months. Mall tenants, which operators rely on for rent payments, are also stressed. Some are going bankrupt and closing stores, such as department store chain J.C. Penney.
CBL, which operates 107 malls, said more than 30 of its tenants have filed for bankruptcy protection this year and are shutting stores, including woman’s clothing retailer Ascena, which has 100 Ann Taylor, LOFT and other stores in CBL malls. Based in Chattanooga, Tennessee, CBL operates malls across the U.S., including EastGate Mall in Cincinnati and West County Center in St. Louis.
CBL Properties News Release: CBL Properties plays a vital role in the communities in which we are located. Our properties are a center of commerce that serve as a large employment base, a valuable community partner, and generate significant taxes that support programs in our communities. I am writing to communicate the important steps we are taking to position CBL for future success.
On August 18th, CBL entered into a restructuring support agreement (“RSA”) with a group representing a majority of our bondholders that will allow us to significantly strengthen our balance sheet and organization. In order to implement this comprehensive restructuring, on November 1st, CBL & Associates Properties, Inc., CBL & Associates Limited Partnership and certain related entities commenced voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.
We are confident that this path will enable us to emerge stronger. We are committed to our mission to serving our community to the best of our abilities for years to come.
A few key points about this news:
- • It’s business as usual at CBL’s properties. All CBL’s properties have reopened in accordance with the latest guidance from state and local governmental orders and will continue to operate as normal. Visitors to our properties will not notice any change in our operations.
- • CBL Properties will be strengthened through this process. CBL will continue to own and operate a portfolio of market-dominant shopping centers with a vision to transform our properties from traditional enclosed malls to suburban town centers. This process will allow us to strengthen our balance sheet and provide even more flexibility to execute on our strategies.
- • CBL will continue to work with our valued service providers, business partners and retailers. CBL has a significant cash position, which along with its net cash flow, provides sufficient liquidity to run our business. We will continue to meet our ongoing financial obligations.
We hope the resources on this page will address any other questions or concerns that you might have.
For over 40 years, we have provided customers with the best in retail, dining, and entertainment. We look forward to serving you for another 40 years. Thank you for your continued support of CBL.