Clay Terrace owner files for bankruptcy; what it means for the mall

The company that owns Clay Terrace filed for bankruptcy on Sunday.

Washington Prime Group, Inc. announced on Sunday that it has filed for Chapter 11 bankruptcy with the U.S. South District Bankruptcy Court, according to a press release from the company.

But a company spokesperson said in an email to IndyStar on Tuesday that Clay Terrace’s operations in Carmel are not expected to be affected, which includes active rental and redevelopment plans.

Clay Terrace shopping center in Carmel.

“The COVID-19 pandemic has created significant challenges for many consumer-facing businesses, including Washington Prime Group,” a company spokesperson said. “The company has determined that the Chapter 11 route is the most effective next step in resolving the company’s unpaid debt as we emerge from the pandemic. “

Washington Prime Group plans to continue its operations “in the normal course of business for the benefit of our customers, tenants, stakeholders and colleagues,” Lou Conforti, CEO and Director of Washington Prime Group said in a company press release.

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