Banking & Finance

Cross Creek Mall shows positive signs after filing for bankruptcy

By Staff Report, posted 3 years ago
Fayetteville's Cross Creek Mall officials said the mall has seen some indication that may allow it bounce back after its Chapter 13 bankruptcy reorganization. (Photo provided by Cross Creek Mall.)
 

After filing for Chapter 13 bankruptcy in November, the Tennessee-based company that owns Fayettevile’s Cross Creek Mall is optimistic that it has a brighter future and points to its 2021 second-quarter financial report as evidence.

CBL Properties (OTCMKTS: CBLAQ) announced on Aug. 11 that the U.S. Bankruptcy Court for the Southern District of Texas had approved the company’s reorganization plan. Although CBL still lost money in the second quarter ($8.9 million or $0.05 per share), the bleeding was far less than the second quarter of 2020 when the company lost $81.5 million ($0.42 per share).

“Shopping at the mall is back! The combination of pent-up demand, stimulus checks, positive consumer sentiment and cabin fever led to a rebound in sales across our portfolio over the last few months,” said Stephen Lebovitz, chief executive officer.

For CBL, a vital goal is getting properties fully leased and producing revenue, such as the new Rooms to Go location opening later this year at Cross Creek Mall, Lebovitz said.

“Sales at nearly all our malls are exceeding 2019 levels, with many categories showing double-digit increases,” Lebovitz said. “Traffic has picked up as well and is approaching pre-pandemic levels. This recovery benefited second quarter results, with percentage rents and short-term income trending above expectations.”

Like other retail centers, Cross Creek Mall is looking for strong back-to-school sales for a reboot.

“(We’ve) been swamped preparing for back-to-school campaigns,” Jessica Kirkman, the mall’s marketing director, told the Fayetteville Business Journal.

“Preliminary reports on back-to-school are positive, which bodes well for the holiday sales season,” Lebovitz said.

CBL announced in January that the 45,000-square-foot Rooms To Go was part of the redevelopment of the Sears parcel at Cross Creek Mall. The store is expected to open in the fourth quarter of 2021. A LongHorn Steakhouse is also being built at the mall, which has more than 150 shops and is anchored by Belk, JCPenney, and Macy’s.

Other recent additions at the mall include:

Lim’s men’s clothing; Icemazing frozen cream treats; All-Star Sports premium sportswear and licensed fashion goods; Mode Shoes for women; Select Few exclusive footwear and streetwear; Waffle Cabin authentic Belgian waffles treats; and Cava fast-casual Mediterranean dining.

CBL owns and operates 106 properties totaling 65.7 million square feet across 25 states, including 64 retail centers.

 

Ico insights

INSIGHTS

SPONSORS' CONTENT
cape-fear-valley-health daniel-mccullough-md headshott

Navigating weight loss: Insights from a bariatric surgeon

Daniel McCullough, MD - Metabolic and Bariatric Surgery Director, Cape Fear Valley Health
north-carolina-military-business-center bill-simons headshott

Federal Food Series Webinars Will Connect North Carolina Food Businesses with Government Buyers

Bill Simons - Regional Program Manager, Goldsboro, North Carolina Military Business Center
fayetteville-state-university sambit-bhattacharya-phd headshott

FSU students and faculty make strides towards advancement in applied AI in the Intelligent Systems Laboratory

Sambit Bhattacharya, Ph.D. - Professor of Computer Science and Director of the Intelligent Systems Lab, Fayetteville State University

In The Current Issue

Creating opportunities: The Defense Alliance Foundation seeks to strengthen the local defense innovation ecosystem

DAF Chairman Phil Williams (far left) pictured with City of Fayetteville Mayor Mitch Colvin (center) on June 10 following a presentation on a 25- year vision for the city’s continued growth and transformation. Photo provided by the DAF.The Defense Al


Empowering the mission: Linchpin Solutions provides tools to turn the tech of the future into the tools of today

Linchpin Solutions attends defense conferences throughout the year, using conferences and tradeshows to exhibit their services and connect with network professionals, including industry, military and government leaders to address and understand today


Lumberton is ready for takeoff: Lumberton Regional Airport embarks on major expansion to meet growing demand

Photo provided by Gary Lewis.The City of Lumberton is moving forward with a new terminal project at the Lumberton Regional Airport. It’s a collaborative effort involving several partners, including Cooper Tacia General Contractors, Talbert & Brig