Six months ago we wondered what would happen if General Growth Properties, the second largest mall operator in the country, filed for bankruptcy.
CNN mentioned the very real possibility of their demise and now, after officially filing for bankruptcy this morning, they have the distinction of being one of the biggest real estate failures in US history and one of the largest failures of a non-financial firm within the current economic meltdown.
The company recently defaulted on loads of mortgages and bonds while trying, unsuccessfully, to sell off at least a few of their properties. There's speculation as to whether or not other mall companies will buy out the property or take managing control, but as of today, the outlook's slightly less positive.
We tend to forget about malls, living in New York, but they really are the only way to shop in most suburbs. So has everyone actually given up shopping, are they shopping online, or are retailers just terrified of committing to mall space?