FORT MYERS, Fla. — Washington Prime Group, a major mall owner of more than 100 locations in the United States, filed for bankruptcy, citing pandemic-related shutdowns.
Based in Columbus, Ohio, the company filed for Chapter 11 on Sunday, claiming that COVID-19 “created significant challenges” and that the move is “necessary.”
Washington Prime Group owns Edison Mall in Fort Myers and the Port Charlotte Town Center.
The group secured $100 million in new funding to support its day-to-day operations so it can “continue in the ordinary course without interruption.”
Shares of Washington Prime plunged as much as 55% in early trading. The stock is down 60% for the year.
The retail world has been rattled over the past year as consumer habits shifted dramatically to favor online shopping.
UBS retail analysts estimate that around 80,000 stores will close over the next five years. They also believe the number of US malls will also decline over the next five years.
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