PHILADELPHIA (WPVI) — PREIT, the organization that owns several major malls throughout the Delaware Valley, filed for bankruptcy Monday for the second time since the pandemic struck.
Part of the filing includes the sale of Philadelphia’s Fashion District in Center City.
While PREIT’s portfolio still includes local malls like Cherry Hill Mall, Plymouth Meeting Mall and Willow Grove Park, this latest Chapter 11 filing gives full ownership of the Fashion District to Santa Monica-based developer Macerich.
Although there is no public knowledge of a solid plan or a contract being signed, future plans for this property could include a $1 billion NBA arena for the 76ers.
For now, PREIT officials have informed tenants, vendors and employees of the Fashion District that they will not be affected by this development anytime in the near future.
Meanwhile, many shoppers we spoke to say online shopping is too convenient to resist.
“It’s mostly online for me,” says John Connor of Exton. “I live in Exton. The Exton Mall is pretty much empty, so if you go to the mall, you’re going to King of Prussia.”
“I order half the stuff online because I don’t have the time,” adds Grace Presley of North Philadelphia.
According to published reports, officials from PREIT hope this financial reorganization, including the disposal of its Fashion District properties, will reduce its debt load by $880 million, putting its other properties in a better position to compete with the world of online shopping.
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