AURORA, Colo. — Washington Prime Group, a Columbus, Ohio-based mall and shopping center owner with a presence in the Denver market, has filed for Chapter 11 bankruptcy protection. The owner of 100 retail centers nationwide, including Town Center at Aurora, is in forbearance on an interest payment that was due Feb. 15. Town Center at Aurora ranks as the Denver metro area's 10th-largest shopping center with more than 1 million gross leasable feet, according to Denver Business Journal research.
The company says it has secured $100 million in new debtor-in-possession financing from creditors led by SVPGlobal to support day-to-day operations during the process and "ensure that all business operations continue in the ordinary course without interruption."
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Washington Prime filed in the U.S. Bankruptcy Court for the Southern District of Texas.
“The company’s financial restructuring will enable WPG to right size its balance sheet and position the company for success going forward," CEO Lou Conforti said in a release. "During the financial restructuring, we will continue to work toward maximizing the value of our assets and our operating infrastructure. The company expects operations to continue in the ordinary course for the benefit of our guests, tenants, vendors, stakeholders and colleagues.”
In March, Washington Prime reported a $262 million net loss in 2020, including a $111.4 million net loss in the fourth quarter alone. The company had $3.2 billion in debt overall as of the end of 2020, according to its most recent annual report.
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