MIAMI VALLEY — The company that manages both the Dayton Mall and the Mall at Fairfield Commons announced it may have to file for Chapter 11 bankruptcy to restructure some of its debt, according to its 2020 financial report released this month.
Washington Prime Group, L.P. said it will not be able to make a $23.2 million interest payment that was due last month, which was expected to result in an “event of default” this week.
The action by the company has led to a domino of potential outcomes, which could include the need for the company to file bankruptcy.
“The Company is continuing to engage in negotiations and discussions to restructure its capital structure. The uncertainty associated with the Company’s ability to meet these obligations as they become due raises substantial doubt about the Company’s ability to continue as a going concern as defined by generally accepted accounting principles,” Washington Prime Group wrote in the report.
“The Restructuring may need to be implemented in cases commenced under chapter 11 of the United States Bankruptcy Code,” the company added.
The potential impacts of a Chapter 11 bankruptcy on the operations at the Dayton Mall and the Mall at Fairfield Commons were not immediately clear, however Washington Prime said customers will still be provided with quality service.
News Center 7 has reached out to the malls for a comment.
Both malls have seen a shift in tenants in recent years as longtime clothing retailers Sears and Elder Beerman left anchor spots vacant. Some of those spots have since been filled by furniture stores and, in one case, a church.
Washington Prime said it will continue to work with its business partners during the course of the financial discussions and any potential transaction.
The company ended 2020 with $111 million of cash and cash equivalents.
Cox Media Group
