General Growth Properties, the second largest mall operator in the United States, filed for Chapter 11 bankruptcy last week. The company is in charge of large shopping center names such as the Grand Canal Shoppes at the Venetian in Las Vegas, the Water Tower Place in Chicago and the Oglethorpe Mall in Savannah.
The company has faced the largest amount of empty retail space it has ever seen with almost 2 percent more vacancies since 2007. The company is looking to gain $375 million in financing for the bankruptcy from the Pershing Square Capital Management group.
This hedge fund holds almost 25 percent in holds, shares and swap contracts with General Growth Properties. General Growth’s website does not detail what shopping centers, if any, will be closing. However, they do state on their restructuring information policies that “our properties will continue to operate, our employees will continue to come to work and get paid, and shoppers will continue to shop.”
