Louis Conforti, CEO of the Washington Prime Group, on CNBCs Mad Money.Source: CNBCU.S. mall owner Washington Prime Group is preparing to potentially submit for Chapter 11 bankruptcy defense, with time running thin prior to the business defaults after it avoided an interest payment on its financial obligation, Bloomberg reported Thursday.Last month, Washington Prime missed a $23 million interest payment and stated it would be going into a 30-day grace period to continue settlements with lenders.But those talks have actually given that been faltering, Bloomberg reported, pointing out discussions with individuals familiar with the matter. Still, the plan to pursue personal bankruptcy might change, Bloomberg said, if Washington Prime is able to make progress with its lenders or if its grace period is extended.A spokesperson for the company decreased to comment on the report.The genuine estate investment trust, based in Columbus, Ohio, was formed in May 2014 following a spinoff from the biggest U.S. shopping center owner, Simon Property Group. It went on to grow its portfolio of mall when it acquired Glimcher Realty Trust, in January 2015. Washington Prime presently operates about 100 shopping centers across the nation, a variety of which are considered B- and C-rated, meaning they bring in fewer sales per square foot than an A-rated property. Those homes have actually been under a lot more pressure during the Covid pandemic, with less people venturing out of the home to shop. When they do, theyre most likely choosing outdoor shopping centers over enclosed malls.And with a variety of retail, dining establishment and entertainment occupants requesting lease relief or shuttering more locations, shopping center owners have struggled to meet their own obligations. That stress has actually currently pushed some over the edge and into bankruptcy.Last November, two other mall owners, CBL and Pennsylvania Real Estate Investment Trust, applied for Chapter 11 insolvency defense. The latter has since emerged.Washington Prime shares tumbled more than 45% midday Thursday. The stock is down more than 80% from a year back. Washington Prime has a market cap of about $71 million.

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