The owner of Huntsville’s Parkway Place Mall and retail properties in 26 states has filed for bankruptcy, but says the properties will remain open with issues as usual during restructuring.
CBL Properties said it will voluntarily seek Chapter 11 bankruptcy protection Oct. 1.
CBL Properties was founded in 1978 and is headquartered in Chattanooga, Tenn., And operates 11 properties in that state, including CoolSprings Galleria and CoolSprings Crossing in Franklin, Tenn. The company’s founding family are major shareholders, and Stephen D. Lebovitz, son of the co-founder, is the chief executive officer.
Those properties and the Huntsville shopping center on Memorial Parkway will remain open, the company said. “Visitors … will not notice any change in our actions,” said another statement.
“Achieving this agreement with our note holders is an important milestone for CBL,” Lebovitz said in a statement. “The agreement will significantly improve our balance sheet by reducing the levy and increasing the net cash flow and will simplify our capital structure, and will provide progressive financial flexibility.”
The plan goes forward to “transform our properties from traditional enclosed malls to suburban city centers,” the company said in a statement.
Shopping malls and malls like those operated by CBL have to deal with multiple threats including trends for online shopping and the coronavirus pandemic which has further restricted foot traffic. Analysts say the company could not reduce its debt to survive the economic downturn.
