Tough Economy Means Trouble For Local Malls
NEW ORLEANS — Economic experts worried Friday that two New Orleans malls could become casualties of the tough economic times.
“I’m not going to sound the death nell for it, but I think there are tough times ahead at a lot of other retail businesses in the city,” New Orleans CityBusiness Managing Editor Greg LaRose said.
The biggest worry is over financial problems at General Growth Properties. The company owns the Riverwalk downtown and the Oakwood Center in Gretna.
“Its a very good mall. Facilities are quite good,” Reeva Valentine said of the Riverwalk. Valentine said she shops at the Riverwalk when the cruise ship she works on docks in New Orleans. And because the Riverwalk depends so much on tourism experts say it is more vulnerable that the Oakwood Center.
General Growth’s stock price fell to 42 cents after the company said it is being weighed down by $5.9 billion dollars in debt that could force it to seek bankruptcy protection.
This year General Growth lost 99 percent of its value. It’s now the least valuable company listed in the S&P 500 index.
“I think they’ll be in the same boat as a lot of other retailers. They’re facing tough times. They have to weather through and be mean and lean,” LaRose said.
The question on the mind of shoppers is whether the malls would close if the company files for bankruptcy.
“We continue working with our advisors to develop a comprehensive, strategic plan to generate capital. Regardless of our situation, our properties and company will continue to operate, remain vibrant and look forward to a prosperous holiday season,” General Growth said in a statement.
LaRose said it’s unlikely the Oakwood Center would close because it’s a thriving mall frequented by locals. Riverwalk could be in more danger if tourism rates slip because of the national economic problems.
General Growth Properties owns more than 200 shopping centers in the country.