Photo by Manisha Raghunath on Unsplash
New Jersey Mall Owner PREIT Faces Bankruptcy
December 14, 2023
Facing bankruptcy, the Pennsylvania Real Estate Investment Trust (PREIT), owner of multiple New Jersey malls, has proposed a reorganization plan in hopes of preventing the malls from closing. The plan aims to reduce its current debt by $880 million, cease trading publicly, and offer its shareholders a $10 million payout. Additionally, it involves extending the debt maturity period by five years.
The proposal, unanimously supported by current PREIT lenders, awaits approval from the Delaware federal bankruptcy court. The firm, which foresees an exit from bankruptcy by early February, has reassured that all employees, suppliers, and vendors will be paid throughout the bankruptcy proceedings.
Since its establishment in 1960, the Philadelphia-based firm has consistently expanded its portfolio of shopping centers. A significant leap came in 2003 when it procured six additional malls from The Rouse Company, including the ones in Cherry Hill and Moorestown, New Jersey.
The company hit its peak in July 2005, with a per-share value reaching $721.50. However, the Great Recession led to a dramatic dip, with shares worth only $42.75 in 2009’s first quarter. A recovery did occur, with values rising to around $350 per share in 2016. Nevertheless, an unremitting decline ensued, exacerbated by the COVID-19 pandemic. This situation led to the firm filing for bankruptcy in November 2020. As of last week, the shares were traded at a meager 24 cents per unit.
Despite these financial ordeals, PREIT remains optimistic about its Cherry Hill Mall and Moorestown Mall. The former has consistently been a profitable asset, while the latter, currently undergoing redevelopment, is acclaimed as a corporate highlight.
A 166,000-square-foot outpatient facility opened by Cooper University Health Care was recently inaugurated at Moorestown Mall. The mall will also be hosting a 375-unit apartment complex and a sprawling family entertainment complex, both currently under development. The company celebrates the consistent profitability of Cherry Hill Mall and the ongoing redevelopment of Moorestown Mall as corporate successes. Proposed plans also include amending employee retention strategies, bonuses, and top-level contracts, with any changes affecting only those directly employed by PREIT.
Recent News
Tesla’s Supercharger Shake-Up Leaves Uncertainty
Tesla’s recent layoffs have raised questions about the future of its Supercharger network. With close to 500 workers cut, including key figures, Tesla’s move signals a significant shift in its charging strategy. This decision comes amidst CEO Elon Musk’s ongoing efforts to streamline operations.
Formula One Gets Boost in Miami Merchandise Sales
J.P. Morgan Payments steps up to manage transactions for Formula One merchandise during the Miami Grand Prix, on-site and online.
Vodka Introduces New Spirit From Outer Space
In the realm of spirits, innovation is often the key to standing out amidst a sea of familiar flavors. Enter Shooting Star Vodka, a groundbreaking concoction that defies convention with its infusion of a truly extraterrestrial ingredient: a meteorite discovered in 1977. This celestial addition has transformed the humble vodka into a cosmic elixir, promising drinkers a taste experience unlike any other.
Survey Reveals Britain’s Favorite Breakfast Cereal
When it comes to breakfast cereals in Britain, one particular brand has managed to carve out a niche for itself: Crunchy Nut corn flakes. Despite its high sugar content, this classic cereal has been dubbed Britain’s favorite, a title it has held for almost 50 years. Originating from the Kellogg’s factory in Trafford Park, Manchester, in 1980, these corn flakes, enhanced with honey, molasses, and peanuts, exceeded initial sales projections by threefold within the first three months.