Augusta Mall Owner Files Chapter 11

Augusta, GA—It’s fueling Deborah Jenkins’ shopping concerns.

“Just hearing about what’s happening with them I’m totally shocked we don’t have any other mall now Augusta has one mall,” said the regular, at Augusta Mall.

And the parent company that owns the Augusta Mall, General Growth Properties (GGP), has filed Chapter 11 bankruptcy protection.

Company officials say they voluntarily sought relief to reduce and restructure more than $25 billion in debt.

“I’ll tell you once again we’re going through a rough spot in the national economy,” said Mayor Deke Copenhaver.

“News like this we are not out of the woods yet we’re going to hear that at the national level, will that ripple through the local economy I couldn’t say for sure” he said.

But that economic ripple is not just an Augusta concern, but a state one, as well. Not only does General Growth Properties own Augusta Mall, but several other big shopping complexes across the Peach State. In fact, Atlanta is the company’s largest market.

“What we’ve seen is obviously a slow down and virtually a stop in the residential side of the market place, now were also seeing it on the retail and commercial side it is very, very troubling,” said Georgia Lieutenant Governor Casey Cagle.

A big plus for the Augusta Mall was one of the negatives for its parent company. In November 2007, the ribbon was cut on the 180,000 square-foot expansion. While it meant new stores for Augusta, it was $70 million in debt that needed to be paid for GGP.

Augusta Mall officials did not want to go on camera, but say the Chapter 11 will not affect business, General manager Linda Hardin said, “we will be open and operating and will remain so, going forward…”

But, this corporate restructuring could mean changes for Augusta Mall. In the future, it could be sold, but shoppers have other worries.

“Now hearing about their parent company I am concerned they will close what would we do,” said Jenkins.

From Chicago, company officials echoed what Augusta Mall managers said, saying all day-to-day operations of the company’s shopping centers, and other properties, will continue as usual.

GGP owns several other malls in both Georgia, And South Carolina:

- Cumberland Mall, in Atlanta, GA

- Perimeter Mall, in Atlanta, GA

- Northpoint Mall, in Alpharetta, GA

- Peachtree Mall, in Columbus, GA

- Southlake Mall, in Morrow, GA

- Oglethorpe Mall in Savannah, GA

- The Shoppes at River Crossing, in Macon, GA

- Columbiana Center in Columbia, SC