Washington Prime Posts $55.4M Loss in Q1

COLUMBUS, Ohio – Washington Prime Group Inc., the real estate investment trust that owns the Southern Park Mall, on Monday reported a net loss of $55.4 million for the first quarter. 

This compares to net income of $3.4 million during the same period in 2020. 

Washington Prime said the impact of the COVID-19 pandemic caused the company’s year-over-year revenue to drop by $20.7 million.  It also incurred a noncash charge of $12.1 million and legal and professional expenses of $14.5 million during the quarter. 

“The company’s management has stated that there exists substantial doubt about the company’s ability to continue as a going concern,” the company said in a statement. 

Washington Prime is engaged in discussions with senior note holders and other stakeholders about restructuring the company’s debt outside of bankruptcy.

Still, “the restructuring may need to be implemented pursuant to a plan of reorganization to be filed in cases commenced under Chapter 11 of the United States Bankruptcy Code,” the company cautioned.

In February, Washington Prime missed an interest payment of $23.2 million. It has since received three extensions of a forbearance agreement to continue negotiations with its stakeholders. 

The latest extension expires May 12. 

The Southern Park Mall is currently undergoing a multimillion-dollar makeover of the retail center, which opened in 1970. Among its most recent tenants is Planet Fitness, which relocated to the mall in April.

Copyright 2021 The Business Journal, Youngstown, Ohio.