Owner of Plymouth Meeting and Willow Grove Malls Unsure of Its Ability to Survive Over Next Year

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PREIT is now the latest group of mall owners to announce Plymouth Meeting and Willow Grove malls are going to be closed this Thanksgiving. Image of Willow Grove Mall entrance via Montgomery County Planning Commission.

Pennsylvania Real Estate Investment Trust, the owner of Plymouth Meeting and Willow Grove malls, is unsure of its ability to survive, writes Natalie Kostelni for the Philadelphia Business Journal.

In its first-quarter report filed with the Securities and Exchange Commission, PREIT said it has “substantial doubt” it will “continue as a going concern within one year.”

The company came to this conclusion after looking specifically at its senior unsecured credit facility with a $289 million balance, loans of $550 million maturing in 2023, and loans of varying maturities through 2025 totaling $896.5 million in principal balances.

PREIT also considered the financial covenant compliance requirements of its credit agreements as well as the costs of running its mall business.

The company did manage to amend certain requirements on its loans earlier this year, but this relief will only last until September.

As a result, PREIT is “unable to conclude that it is probable that we will be able to meet our obligations arising within twelve months of the date of issuance of these financial statements under the parameters set forth in this accounting guidance.”

Read more about PREIT at the Philadelphia Business Journal by clicking here.

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