CBL & Associates Properties, Inc., the parent company of Southaven Towne Center, filed for Chapter 11 bankruptcy last week. The company, which owns 108 malls across the country, said that day-to-day business at its locations will continue as usual throughout restructuring processes designated by Chapter 11 bankruptcy guidelines.
The Chattanooga-based company owns the Southaven Towne Center, which is home to 43 stores, including Dillards, Men’s Wearhouse and Bed Bath & Beyond.
The shopping mall company’s losses can be attributed to the economic impact of the COVID-19 pandemic. As brick-and-mortar stores temporarily closed and more people turned to online shopping, many shopping malls saw a drop in revenue.
For now, CBL said that the individual malls and businesses will not be impacted by this filing.
When a company files for Chapter 11 bankruptcy, commonly referred to as reorganization bankruptcy, the company has too much debt compared to the amount of assets it has. This will halt any interest that the debt is incurring, and the company can work with the court system to find a repayment plan for that debt.
CBL voluntarily filed for bankruptcy Nov. 1 with plans to “implement a plan to recapitalize the company, including restructuring portions of its debt,” according to a press release.