Washington Prime Group shares fell on Tuesday after the owner of the Columbus-based mall missed a loan payment in February.
Washington Prime stock fell over 34% to less than $ 8 a share in midday trading.
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In a regulatory filing early Tuesday, the company, which owns Polaris Fashion Place and malls across the country, said it missed an interest payment of $ 23.2 million due Monday. Washington Prime noted that it has a 30-day grace period to make the payment.
The company also said it had hired Guggenheim Securities and Chicago-based law firm Kirkland & Ellis to explore the restructuring.
“The Washington Prime Group board has made the tactical decision to hire advisers to explore strategic alternatives to strengthen the company’s balance sheet,” according to a company statement released Tuesday afternoon.
“This is business as usual at Washington Prime Group properties, where our tenants, sponsors and employees will continue to operate as normal, with an emphasis on providing a safe and enjoyable experience for our guests.”
Long-standing pandemic issues
Like many mall owners, Washington Prime has been pummeled by the pandemic as stores have been forced to close and customers have turned to online shopping.
The company lost $ 43.7 million in the July-September quarter, and revenue fell $ 37.5 million, or 23%, from a year earlier. Washington Prime attributed the decline to lease changes with tenants and rent arrears.
After its shares fell last year, the company devised a reverse 1-for-9 stock split in December to get the stock price above the low of $ 1 per share on the New York Stock Exchange. .
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Bad time for retailers
Washington Prime is one of many mall owners struggling during the pandemic. In November, two companies, CBL Properties and PREIT, which together own 130 shopping centers, filed for Chapter 11. In the same month, Simon Property Group reported that it would allow two shopping centers, including the Mall at Tuttle Crossing in Dublin, to go bankrupt.
Like other mall owners, Washington Prime has sought to reposition some of its properties toward service and leisure tenants rather than traditional clothing retailers. At Polaris Fashion Place, for example, the old Sears store site is being converted in a FieldhouseUSA sports complex.
Washington Prime operates 100 shopping centers, concentrated in the Midwest, the East Coast and Florida. Centers include Polaris Fashion Place, the Fairfield Commons Mall outside of Dayton, and the Indian Mound Mall in Heath.
@JimWeiker
