The company that owns both the Moorestown and Cherry Hill malls, Pennsylvania Real Estate Investment Trust (PREIT), filed for Chapter 11 on Nov. 1, a move it said “has no impact” on operations at either location.
“We are pleased with where our properties are headed, and we have no intention of making any ownership changes as a result of this news,” said Heather Crowell, executive vice president of strategy and communications at PREIT.
Crowell explained via email that while COVID-19 has taken a toll on many businesses, PREIT’s case is “somewhat unique” in that the company has come to terms with the majority of its lenders, save for an agreement from one remaining bank.
“We received 95-percent lender support for a new credit facility; this was simply a move to get the 5 percent lender to support our credit agreement,” Crowell explained. “We will continue to enthusiastically operate our business, pay vendors and suppliers and trade on the (New York Stock Exchange).”
Crowell said PREIT expects to emerge from the bankruptcy process quickly and in a stronger position, with an additional $150 million in capital. She added that all employees, vendors and suppliers will continue to be paid in the normal fashion and that PREIT looks forward to a strong holiday season as mall traffic rebounds.
“As we enter the most critical season for our business, we remain hyper-focused on welcoming guests and supporting our tenants to effectuate a magnificent holiday season,” Crowell noted.
Both the Cherry Hill and Moorestown malls sat largely vacant from mid-March until the end of June, when Gov. Phil Murphy’s executive order allowed malls to reopen at 50 percent of their usual capacity. State guidelines mandate maintaining capacity limits.
According to Crowell, the company’s primary focus at this time is creating “compelling retail and experiential destinations” while prioritizing the health and safety of its employees, partners, customers and communities.
At both malls, workers and shoppers are required to wear masks inside the facility. Hand-sanitizing stations were installed throughout both facilities, and at the Cherry Hill Mall, staff removed all common-area seating to discourage congregation.
Crowell said the company expects the bankruptcy process will conclude quickly.
“We are proud of the work we do (and) look forward to a stronger future.”
