“Our approach across our entire portfolio is business as usual,” Thomas Nolan Jr., General Growth’s president and chief operating officer, said in a conference call with reporters. “Our restructuring efforts will be invisible to the tens of thousands of customers who visit our properties every day. Our properties will continue to operate, our employees will come to work and get paid, and our shoppers will continue to shop.”
News of the filing comes amid a global financial crisis and credit crunch that significantly impaired General Growth’s ability to modify its debt terms. The sagging economy continues to drive down retail figures and chase cash-conscious shoppers away from pricier malls and into big-box stores.
As a result, at least 158 of General Growth’s regional shopping centers, including the Fallbrook Center in West Hills and Northridge Fashion Center, have also filed for protection. Neither the Glendale nor Burbank facilities have sought protection.
The Glendale Galleria, with access points between Brand Boulevard and Colorado and Columbus streets, sits on a highly desirable retail site in a trade area that boasts 1.4 million potential shoppers averaging $70,547 in income. More than 250 shops and four department stores — Nordstrom, Macy’s, JCPenney and Target — anchor the property. “The bankruptcy filing will likely have little impact on the mall,” said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp. “Already, its major anchors have come out and repeated that it’s business as usual.”
