The owner of Chautauqua Mall, Washington Prime Group, has filed for Chapter 11 bankruptcy protection. The company made the filing on Sunday after the COVID-19 pandemic forced it to temporarily close some of its roughly 100 shopping centers across the United States and businesses were unable to pay its rent.
CNBC reports the filing made in United States Bankruptcy Court for the Southern District of Texas states the company’s estimated assets ranged from $1 billion dollars to $10 billion dollars as did its estimated liabilities.
Reuters was the first to report that the Columbus, Ohio-based company, formed in 2014 following a spin-off from mall giant Simon Property Group Inc, was preparing to seek bankruptcy protection.
The company was in talks for roughly $100 million of so-called debtor-in-possession financing to aid operations during bankruptcy proceedings.
Fallout from the pandemic last year forced Washington Prime to close some properties for a time and relax collection of rent from its tenants, squeezing the mall owner’s finances.