Our Mall declaring Bankruptcy!?

[*pixie*dust*]

That was a big story today in our area. A management company that owns malls in Grand Rapids, Kalamazoo and Battle Creek has declared bankruptcy. The economy is really a mess. Wonder if that means they will close any of them.

 

[Ilovemylife]

Was it General Growth Properties? I read yesterday (they own our mall, too) that they were thinking about declaring bankruptcy...that hadn't yet.

Maybe that changed today?

 

[The Mystery Machine]

Here in St. Louis we also have a mall that is going under. This is our "high end" mall called the Galleria.

Is it the same company?

 

[missypie]

Yeah, I read yesterday that General Growth may file, but I haven't heard that they did. The article in the Dallas Business Journal said that this year,the company has lost 99% of its value!!!

 

[The Mystery Machine]

I believe GG has to come up with 1 billion in the next 2 weeks which is impossible.

 

[missypie]

I believe GG has to come up with 1 billion in the next 2 weeks which is impossible.

As much as I like to shop at the Dallas Galleria, I don't think my little purchase will help them there! In all seriousness, rent the mall tenants pay is fixed; the way they would get more money is on "percentage rent" - paid by retailers based on high sales. I'm pretty sure percentage rent is nosediving rather than rising. I guess they're looking for loans?

 

[Ilovemylife]

Yeah, I read yesterday that General Growth may file, but I haven't heard that they did. The article in the Dallas Business Journal said that this year,the company has lost 99% of its value!!!

Isn't that just crazy?? Their stock is now at 36 cents a share...down from $50a share earlier this year. Craziness.

And I also read that even if the malls are sold to new owners, shoppers wouldn't notice any changes.

The company obviously has some money managing issues...taking out more loans to pay off other loans is not very smart.

 

[missypie]

Isn't that just crazy?? Their stock is now at 36 cents a share...down from $50a share earlier this year. Craziness.

And I also read that even if the malls are sold to new owners, shoppers wouldn't notice any changes.

The company obviously has some money managing issues...taking out more loans to pay off other loans is not very smart.

I hope when/if they do file, I can find a good article about their descent. At least by us, the General Growth malls have great tenants, and are clean, safe and busy. Were they really banking on ever increasing percentage rent to pay the loans, did they pay too much in TI to the tenants, was it tenant bankruptcies, or what?

I do know that when the Mills Company malls were taken over by Simon, there was not a second of visible disuption at my local Mills mall. Of course, Simon was willing to buy the Mills malls. Who is out there now who wants to go into the mall business?

 

[*pixie*dust*]

Was it General Growth Properties? I read yesterday (they own our mall, too) that they were thinking about declaring bankruptcy...that hadn't yet.

Maybe that changed today?

Yep, thats the one!

 

[missypie]

Don't think General Growth has actually filed yet.

 

[piglet too]

Could you link me to an article? I cannot find anything about them actually declaring, and am very interested in this situation.

 

[Planogirl]

If it's the company I've heard about, our local mall here in Frisco is one they own too. According to one opinion, someone will likely buy them out and the malls should be OK at least for now.

All of this is really getting creepy.

 

[The Mystery Machine]

Here is an article about our mall here in St. Louis.

Shares of General Growth Properties Inc. dropped 64 percent Tuesday after the owner of the St. Louis Galleria warned it faces solvency trouble and may be forced to file for bankruptcy if it can't refinance or extend nearly $1 billion in debt due next month.

The Chicago-based real estate investment trust, which is the nation's second-largest mall owner, disclosed in a Securities and Exchange Commission filing late Monday that it may default on certain debt obligations. Making matters worse is another $3.07 billion in property and corporate debt slated to come due next year.

General Growth, beset by falling funds from operations and plagued by a tightening global credit market that's making it difficult for companies to obtain financing, is trying to sell off properties and cut costs to weather the rocky economic climate. It's also suspended its dividend and ousted a cadre of top executives. But that hasn't calmed investors, who have sent the company's shares into a virtual free fall since September.

The company's shares closed Tuesday at 49 cents, down 88 cents, after recovering from an intraday low of 33 cents.

http://www.stltoday.com/stltoday/bu...7387ea71920bf5c3862574fe007723bf?OpenDocument

 

[missypie]

Could you link me to an article? I cannot find anything about them actually declaring, and am very interested in this situation.

I assume that if they had filed, I'd have received some sort of email news flash from ICSC.

 

[Ilovemylife]

They haven't declared yet.

Here's the article from our local paper.

http://www.postcrescent.com/article/20081112/APC03/811120512/1028

 

[*pixie*dust*]

They were talking about it on our local news. I will see if they have a link or anything.

 

[DeterminedOne]

Our mall is owned by GGP also. It's the largest mall in Northeast Indiana ... although not really all that big if you ask me. GGP just purchased it five or six years ago. Guess they bit off more than they could chew with all the buy ups.

 

[BCV513]

Here, they own the Natick Collection. A few years ago, it was a regular mall. They totally re-did it and made it amazingly high end. It used to have Macy's Sears, etc. Now it has Neiman Marcus, Tiffany's, Burberry, stuff like that. It's been open about a year. And is now bankrupt.

 

[Tuffcookie]

A local Cleveland Mall is owned by the same company:

Owners Of Local Mall $1 Billion In Debt

POSTED: 8:47 pm EST November 11, 2008
UPDATED: 9:16 am EST November 12, 2008


CLEVELAND -- The company that owns Beachwood Mall is in a financial slump.

General Growth Properties Inc. saw its shares plummet on Tuesday.

Even though Beachwood Mall seems to be thriving, General Growth owns many other properties and is overextended.

The company is almost $1 billion in debt, and it's due next month.

Experts expect General Growth to start selling off properties soon.

TC

 

[SeeDisney]

When I first looked at your thread, I assumed that you lived in Maryland cuz I saw on the news this morning that 7 malls in the Baltimore area will file for bankruptcy.

That is so sad about this economy. Just sad.