Pearlridge Center owner Washington Prime Group files for Chapter 11 bankruptcy - Honolulu Star-Advertiser

Columbus, Ohio-based Washington Prime Group, the majority owner of Pearlridge Center in Aiea and more than shopping centers, has filed for Chapter 11 bankruptcy reorganization.

The majority owner of Pearlridge Center in Aiea and more than 100 shopping centers has filed for bankruptcy reorganization.

Columbus, Ohio-based Washington Prime Group filed for Chapter 11 late Sunday after struggling for more than a year with a pandemic that crushed mall revenue and traffic.

The company said restructuring its debt would allow it to “strengthen its business and operations going forward.”.

“The COVID-19 pandemic has created significant challenges for many companies, including Washington Prime Group, making a Chapter 11 filing necessary to reduce the company’s outstanding indebtedness,” the company said in a news release.

“Washington Prime Group’s guests, retailers and business partners can expect business as usual at all of the company’s retail town centers throughout the proceedings,” the company said.

“The company’s financial restructuring will enable WPG to right size its balance sheet and position the company for success going forward,” said Washington Prime CEO Lou Conforti in a news release.

The company said its restructuring agreement with its creditors, led by its largest, SVPGlobal, allows it to deleverage its balance sheet by $950 million.

In addition, Washington Prime Group and SVPGlobal anticipate an equity offering of $325 million as part of the restructuring.

Washington Prime joins a growing list of shopping center owners to struggle during the pandemic.

In November, two companies, CBL Properties and PREIT, which together own 130 shopping centers, filed for Chapter 11.

“Millennials and Gen Zs don’t enjoy shopping in malls; they’ve become this flat experience,” Kohan said.

“We’ve seen declines in traffic in B and C malls for years,” Kohan said, while reiterating that bankruptcy could be a positive for Washington Prime.