Polaris Mall Owner Files for Bankruptcy
The Columbus-based Washington Prime Group officially announced Sunday, June 13, that the company is filing for Chapter 11 bankruptcy. The company owns and operates more than 100 malls and shopping centers across the United States, including including Polaris Fashion Place.
According to a press release posted on the Washington Prime Group website, the company cited the COVID-19 pandemic as playing a significant role in the organization’s financial instability. Malls and shopping centers were forcibly closed in the spring and summer of 2020 at the height of the pandemic, and many individual stores were unwilling or unable to pay rent to mall owners like Washington Prime.
Of course, before the coronavirus pandemic, many malls and traditional malls weren’t exactly in good financial health. According to an article published on Vox last november, the number of employees in department stores fell almost 50% between 2011 and 2020, with the total number of stores in operation falling from 8,600 to 6,000. The shrinking American middle class combined with a buying trend online are considered to be the main causes of the disappearance of shopping in department stores.
According to a CNBC August 2020 report, about 25% of US shopping centers are expected to close within the next five years.
For now, customers can expect “business as usual” at Polaris Fashion Place as the Washington Prime Group said the company has secured a $ 100 million investment to support day-to-day operations at their properties. .
For more information visit investor.washingtonprime.com.