17 Apr Carolina Place Mall Parent Files Chapter 11 Bankruptcy
Carolina Place Mall is open for business, even though its parent company filed a Chapter 11 bankruptcy. I was there last night, and no one shopping there would know that there is any problem.
The company has stated that they are not closing the mall, and shoppers should not notice the difference. Chapter 11 does not mean that the company is going out of business, and many companies use Chapter 11 to strengthen the company so they can stay in business.
Chapter 11 is a type of bankruptcy that allows corporations and individuals with a lot of debt to reorganize financially. They can write down or eliminate certain types of debts, and they can renegotiate contracts to more beneficial terms. It can help them get their income and expenses in line, just like a consumer Chapter 13 does for individuals.
Chapter 13 is a consumer reorganization and the type most ‘ordinary’ people would use. It is much less complicated, less expensive and easier than Chapter 11 bankruptcy, but in principal they work in similar ways.
With the economy the way it is now we will see more filings by companies that we all use. These companies still offer many good products and services. As a consumer you may not want to invest money in a company in bankruptcy, but using their services may help them get back on their feet. I would also be cautious about making a large deposit, pre-paying for items that are not in stock, or that have to be ordered from another company.
But many companies emerge from Chapter 11 bankruptcy stronger and in a position to stay in business with changed economic times.
The bankruptcy filing affects 5 shopping malls in North Carolina: Carolina Place in Pineville (near Charlotte), The Bridges at Mint Hill (near Charlotte), Four Seasons Town Centre in Greensboro, and The Streets at Southpoint in Durham.
See story in Hickory Daily Record Mall Owners File For Bankruptcy
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