PHILADELPHIA — PREIT, the owner and operator of Woodland Mall, announced it has filed for bankruptcy.
We’re told the move is a step toward reducing the company’s debts by $880 million. The plan was approved by their first and second lien lenders.
PREIT says investors have pledged to help them reach part of their goal.
CEO Joseph F. Coradino released the following statement:
"We are pleased to be moving forward with strengthening the Company's balance sheet and positioning it for long-term success through this Prepackaged Plan. Following the pandemic disruption, PREIT has worked tirelessly to enhance the portfolio, dramatically improve occupancy and diversify its tenancy. However, unusual economic conditions have limited the Company's options with respect to its debt obligations as meaningful achievements on the operating front were met with inflation and rising interest rates.
"Today's announcement will position a restructured PREIT to execute on strategic initiatives to continue transforming its portfolio for the tenants and communities it serves. We look forward to quickly emerging from this process as a financially stronger company with the resources and support to continue creating diverse, multi-use property experiences throughout our portfolio."
In a statement, a spokesperson for Woodland Mall said:
"Operations at Woodland Mall are continuing as normal, and customers can continue to shop as they always have. The primary focus of our team remains creating compelling retail and experiential destinations while prioritizing the experience of our employees, partners, customers and communities."
The company says business will remain uninterrupted while restructuring approvals are sought. They expect to leave bankruptcy before early February. All employees, suppliers and vendors will be paid while proceedings take place.
