America’s malls under pressure: CBL, Pennsylvania REIT, file for bankruptcy

Business

CoolSprings Galleria Mall, Franklin, TN

Source: CBL Properties

Mall owner CBL & Associates filed for Chapter 11 bankruptcy protection late Sunday, after its business was pressured by the coronavirus pandemic, highlighting the stresses the retail real estate industry is facing.

CBL’s filing came shortly after Pennsylvania Real Estate Investment Trust, the largest mall owner in Philadelphia, filed a Chapter 11 petition earlier Sunday, to execute a prepackaged financial restructuring plan.

CBL had previously said in August that it had entered into a restructuring support agreement with a group of its bondholders, in an attempt to try to strengthen its balance sheet.

“After months of discussions and consideration of a number of alternatives, CBL’s management and the Board of Directors firmly believe that implementing the comprehensive restructuring … will provide CBL with the best plan to emerge as a stronger and more stable company,” CBL CEO Stephen Lebovitz said in a statement.

This story is developing. Please check back for updates.

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