Major mall operator General Growth fi...

Major mall operator General Growth files for bankruptcy

There are 31 comments on the Chicago Tribune story from Apr 16, 2009, titled Major mall operator General Growth files for bankruptcy. In it, Chicago Tribune reports that:

General Growth Properties Inc. , owner of some of the nation's most prominent malls, including Water Tower Place , filed for Chapter 11 protection from creditors Thursday, marking the biggest real estate bankruptcy in U.S. history.

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FLAWDA

Troy, MI

#25 Apr 16, 2009
It is a shame that it has come to this that our favorite american past time of shopping at our malls is possibly coming to an end. The most exciting time of the year was Christmas. I used to live in Chicago and suburbs and in my earlier years remember the hugh Christmas tree in the middle of Marshall Fields and having lunch in the Tea Room on the 7th floor. I enjoyed it and hated to see Marshall Fields taken over by Macys. I saw many of the suburban malls being built and remember shopping at almost all of them. When they had sales, they really had sales. I suppose all good things don't last forever and maybe some day soon the restructured malls may thrive again. There are going to be more malls closing throughout the United States. It is sad!!
Not Shocked

Lombard, IL

#26 Apr 16, 2009
It was brought to my attention that most of the Chicago area malls listed here are only managed (NOT owned) by GGP, and are therefore not part of the bankruptcy protection. Those locations (Oak Brook, Water Tower, etc.) will operate business as usual. Spring Hill Mall in West Dundee is the only GGP owned mall in the area listed in the filing. Regardless, it's still a shame.
Bitter

Linden, IA

#27 Apr 17, 2009
American First wrote:
Good. let them see how it is to be poor. Oh, so mary can't go to Brown or Princeton; oh, we have to sell our Yatch; oh, the 2 week trip to london is off. Who cares.
Looks like somebody is bitter. Quit trying to blame others for your failure in life. You call yourself "America First", you probably didn't even pay any federal taxes this year. Don't worry, Obambi will ensure that everything is taken care of for you. Just because someone works hard and is smarter than you doesnt make them evil.
djk

New York, NY

#28 Apr 17, 2009
They clearly grew to fast in the past few years, and were over leveraged. Along with deteriorating residential property values, the same has happened with commercial properties. Just like what many folks are experienceing with their own homes values, GGP now owes more than their properties are worth. Same case here.

It's a shame for Chicago because we will be losing the charitable side of the Bucksbaums, whom supported many local non-profits.
Read Crains

Oak Park, IL

#29 Apr 17, 2009
GGP is a family-controlled business that grew too quickly while still operating as a personal fiefdom. GGP acquired significant debt, and its CFO gambled that debt could be refinanced at favorable terms, but failed to do so. CFO also received loans to exercise his stock options, further complicating matters and again exposing fact that though GGP was a publically-traded company it still operated like a family-owned "piggy bank".

GGP's bankrupcy filing has nothing to do with declining retail sales, and all to do with corporate mismanagement. GGP's inability to refinance its debt, and the subsequent enormous decline in stock value, forced it to file for bankrupcy protection.

Note that noted journalist-economist Thomas Friedman is son-in-law to Bucksbaums. Perhaps that famial relationship (and family wealth) colors his own editorial comments. Read Vanity Fair article on GGP and Bucksbaums for more insight.
That guy

United States

#30 Apr 17, 2009
Please, please, please, Lord, let this mean that they'll have to tear down that horrid blivet of a building they have on the river.
Mojo Nixon

United States

#31 Apr 17, 2009
Burn down the malls
Burn down the malls
Burn down the shoppin' malls
I said Burn down the malls
said burn down the shoppin' malls
burna burna burna burna down shoppin' maaalls

Hey you ever get the feelin that America is turning into some kinda sit-com?
lowest common denominator shopping mall marketing strategy from hell?

You ever get that feeling?

Well I got that feeling right now and it's kinda getting under my skin
yeah
so get some gas-o-line and
Burn down the malls SAY IT
Burn down the malls LOUDER
Burn down the malls

You know it just started out as a kind of corner store
Then it turned into a shopping center
Oh I remember the shoppin' center openings man
they used to have those big lights shinin' up
but now...

Now, where do the old folks go?
Where do the young kids go?
What's America, what's America turning into?

Mondo-condo-shopping-mall-hell

I say
Burn down the malls
Burn down the malls
Burn down the malls

Nero had the right idea-fiddle while you burn...
djk

New York, NY

#32 Apr 17, 2009
There business model is in fact also affected by the slowing of retail sales. The shutting of retail stores in their malls and strip malls, means less cash inflow due to vacancies. Retailers also pay what is called CAM, or common area maintenance fees, and some of these fees are tied in to "% of sales", which of course are sluggish. Poor management,(not preparing for economic downturn), however, does fall into the category of "poor management".
ClarkFullerton

Chicago, IL

#33 Apr 17, 2009
Adam wrote:
Hey Chicago what do you say??? Time to cut down the taxes today.
Downtown is taxing its self out of business.
Uh dude this company has malls all over the country. Chicago taxes have nothing to do with this. If anything Water Tower place is nicely leased up.

I just love when people try to blame national issues on Daley.
Always Right

South Holland, IL

#34 Apr 17, 2009
ClarkFullerton wrote:
<quoted text>
Uh dude this company has malls all over the country. Chicago taxes have nothing to do with this. If anything Water Tower place is nicely leased up.
I just love when people try to blame national issues on Daley.
So how is that brown nose of yours? Is it still stuck up Daleys ass? You must be on his ghost payroll or something.
ClarkFullerton

Chicago, IL

#35 Apr 17, 2009
Always Right wrote:
<quoted text>
So how is that brown nose of yours? Is it still stuck up Daleys ****? You must be on his ghost payroll or something.
Actually wasn't sticking up for Daley but was just asking that individual how is Daley/Chicago to blame for GGP bankruptcy when 90% of General Growth's properties were outside of the city?

These are the same people that when all these other National retailers go under they try to bring city taxes or parking as to blame because these retailers didn't have stores outside of Chicago? People trying to blame all these National economic issues on Daley are actually giving the guy way to much credit.

Is that your answer for anyone that when they support an individual/team "oh you must be working for so and so and can't think on their own"

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