American Dream Mall considers bankruptcy

Are the days of mega-malls at an end? In the American Dream mall located in New Jersey, that may be the situation. It is believed that the 3.5 million square feet mall for entertainment and retail located in East Rutherford is nearly $290 million in debt. The mall has utilized one of its reserve funds to pay a $9.3 million due payment on Tuesday. According to BankruptcyHQ,the deposit of titles, it was reported to the public for the first time. to Bloomberg the project that was expected to be a thriving new mega-mall is left with just $820 in its reserve fund and the next installment is due the 1st of August.

What happened?

The tax bill that was not paid is only the latest chapter in the mall’s troubled financial situation. The project is estimated to cost $6 billion, the shopping mall shut down just three days prior to the grand opening scheduled for early 2020, as the Covid-19 outbreak started to strike across the United States The developers expected the first year to bring in approximately two billion dollars of sales but the mall only made $54 million in the year 2020 and only $220 million during the first three quarters of 2021.


Source link

Christina A. Kroll