Business as usual is the plan for mall owner CBL & Associates Properties Inc. while it winds its way through bankruptcy court, but the company may eventually close or sell some shopping centers, experts say.
The longtime Chattanooga- based operator that runs 107 locations in 26 states, including Hamilton Place and Northgate malls in the city, could also be bought by a competitor.
“It’s also possible it could be acquired by another player in the industry,” said Nick Shields, senior analyst for the investment research firm Third Bridge. “Consolidation in the mall operator industry is probably inevitable.”
The company, hit by coronavirus- driven lock downs and store closings and the shift by many shoppers to online buying, filed for Chapter 11 bankruptcy protection last week.
Started 42 years ago as one of the nation’s earliest large-scale builders of shopping malls, CBL said its centers will remain open as it restructures its huge debt load in bankruptcy court. A bankruptcy court filing showed the company had total debts of $2.58 billion as of Sept. 30.