WPG To Sell Its Remaining Malls, Shopping Centers
Retailer WPG said it is putting all of its remaining malls and shopping centers on the market and laying off 139 employees at its headquarters.
The sell-off comes as the landlord begins to wind down its business about four years after filing for bankruptcy protection, CoStar reports.
The company has sold about half of its malls and shopping centers in the past year, and the rest of its portfolio is or will soon be up for sale, a spokesperson for WPG told the outlet. WPG's website lists a portfolio of 50 sites across the country.
WPG has sold about $1B in properties over the past several years. The retailer plans to shed its remaining portfolio as it faces nearly $1.1B in CMBS debt coming due between May and November.
The Columbus, Ohio-based company told state labor relations officials that it will enact two rounds of layoffs, with the first set to take effect June 2 and the second completed by March 31, 2026, according to CoStar. The layoffs include WPG's chief financial officer, chief legal officer and head of leasing.
Formerly known as Washington Prime Group, WPG filed for Chapter 11 bankruptcy in June 2021. At the time, WPG struck a deal with a majority of its creditors, including the distressed debt investment specialist Strategic Value Partners, to exchange equity for some of its debt claims.
The company has executed some sizable sales in the past several months.
Brixmor Property Group acquired four grocery-anchored shopping centers from WPG in December for $211.8M, CoStar reported. WPG also sold an outlet shopping mall in October to a New York company for $82M.
