Representatives from Washington Prime Group released the following statement Tuesday morning to North Metro TV: “It’s business as usual at Northtown Mall. The COVID-19 pandemic has created significant challenges for many consumer-facing companies, including Washington Prime Group. The Company has determined that the Chapter 11 path is the most effective next step to resolve the Company’s outstanding indebtedness as we emerge from the pandemic. Throughout the Chapter 11 financial restructuring, we expect business as usual at our town centers, including Northtown Mall, where our tenants, sponsors and employees will continue operating as normal, with a focus on providing enjoyable experiences for our guests.”
Washington Prime Group blames the pandemic and resulting economic turbulence for the need for debt restructuring:
“The COVID-19 pandemic has created significant challenges for many companies, including Washington Prime Group, making a Chapter 11 filing necessary to reduce the Company’s outstanding indebtedness,” read a company press release. “Throughout the restructuring process, the Company remains committed to serving as a preeminent operator of retail town centers and will continue to serve its guests. Importantly, the Company will continue to prioritize the health and safety of our guests, retailers, employees and communities.”
In a published letter to tenants of Washington Prime Group properties, the company wrote: “Practically speaking, and for all intents and purposes, it really is business
as usual. The bottom line is we have the necessary capital to meet all of our operational obligations as well as continue to transform our assets into the dynamic dominant town centers our guests, tenants and sponsors deserve. This means that the Company will continue to deploy capital for tenant allowances, adaptive reuse projects and common area activations, all of which have differentiated us from our peers.”
City of Blaine leaders have said Northtown Mall represents the largest single taxpayer in the city, and Community Development Director Erik Thorvig said the city maintains a good working relationship with the mall and its management.
"The city was aware this could be a possibility and continue to work with WPG on the future of Northtown Mall," Thorvig wrote in an e-mail to North Metro TV. "The city has been told that the bankruptcy should have little to no impact on the local operations and that shoppers and businesses shouldn’t see an impact. The City of Blaine is undertaking a redevelopment and revitalization plan specifically related to the Northtown Mall and surrounding commercial areas later this year. The plan will focus on public and private efforts to revitalize Northtown Mall, develop remaining vacant land around the edges of the mall property and other redevelopment opportunities of underutilized commercial space in the area."
Washington Prime Group is also currently suing Metropolitan Council over the location of the Northtown bus transfer station. That lawsuit will be heard in Anoka in mid-September, according to Minnesota Judicial Branch records. This was also confirmed via a Met Council spokesperson via e-mail to North Metro TV News.
