PREIT and CBL & Associates Properties, filed for bankruptcy within 24 hours of each other, 30 of the company’s retail tenants have filed for bankruptcy, many of them closing stores. as reports Retaildive.com.
Bankrupt, J.C. Penney and Ascena, bring in $18.5 million in yearly revenue for CBL. With so many tenants unable to make rents, the road for retail brick and mortar stores anchored in malls does not look bright. Chapter 11 will allow both companies to continue operating as they navigate the restructuring process.
PREIT (NYSE: PEI), a leading operator of diverse retail and experiential destinations, today announced it has taken the next step to execute its prepackaged financial restructuring plan (the “Prepackaged Plan”) under which the Company will be recapitalized and its debt maturities extended. Consistent with the Company’s previously announced Restructuring Support Agreement (the “RSA”), PREIT has filed a voluntary Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware to implement its Prepackaged Plan. Source Preit
CBL Properties (NYSE:CBL) today announced that CBL & Associates Properties, Inc., CBL & Associates Limited Partnership (the “Operating Partnership”), and certain other related entities have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, in Houston, TX (the “Court”) in order to implement a plan to recapitalize the company, including restructuring portions of its debt. Through this process, all day-to-day operations and business of the Company’s wholly owned, joint venture and third-party managed shopping centers will continue as normal. CBL’s customers, tenants and partners can expect business as usual at all of CBL’s owned and managed properties. Source: CBL