PREIT, owner of Fashion District Philadelphia, files for bankruptcy in restructuring plan

The owner of Fashion District Philadelphia and several other malls throughout the region has filed for bankruptcy as part of a move to restructure its business.

PREIT, short for Pennsylvania Real Estate Investment Trust, had indicated in October that its properties were struggling because of the COVID-19 pandemic. The company made a restructuring proposal to its lenders, hoping to avoid filing for bankruptcy, but ultimately did so after receiving 95% backing for its plan.

The bankruptcy filing announced Sunday ensures that PREIT’s properties can continue to operate without disruption as it finalizes the restructuring.

“We are pleased to be moving forward with strengthening the Company’s balance sheet and positioning it for long-term success through our prepackaged plan. We are grateful for the significant support we have received from a substantial majority of our lenders, which we expect will enable us to complete our financial restructuring on an expedited basis,” said Joseph F. Coradino, CEO of PREIT. “Today’s announcement has no impact on our operations – our employees, tenants, vendors and the communities we serve – and we remain committed to continuing to deliver top-tier experiences and improving our portfolio.”

PREIT owns 21 properties in nine states and has sold off several malls in recent years, including the Phillipsburg Mall in New Jersey and the Palmer Park Mall in Easton, Pennsylvania.

Among the properties PREIT owns in the Philadelphia region are the Cherry Hill Mall and Moorestown Mall in South Jersey and the Willow Grove Park Mall, Plymouth Meeting Mall and the Fashion District, the multiyear renovation of Philadelphia’s former Gallery at Market East that held its grand opening in September 2019.

PREIT reported a net loss of $29 million in the second quarter of this year, following coronavirus shutdowns and decreased shopping among consumers after malls reopened. In September, the company received a stock delisting notice from the New York Stock Exchange after its share price fell below the $1 threshold.

Under the bankruptcy filing, PREIT will list some of its properties as collateral for debt and for the $150 million in new lending it has received.

“With the overwhelming support of our lenders, we look forward to quickly emerging from this process as a financially stronger company with the resources and support to continue creating diverse, multi-use ecosystems throughout our portfolio,” Coradino said.

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Gordon Brothers to Assist German Fashion Retailer Bonita with European Restructuring Proceedings

Cologne, Germany, Oct. 27, 2020 (GLOBE NEWSWIRE) — Gordon Brothers, the global advisory, restructuring and investment firm, announced today it has been engaged by German fashion retailer Bonita to support its restructuring proceedings as the COVID-19 environment continues to hinder retail across Germany.  

Bonita is a large fashion retailer based in Hamminkeln, Germany. Established in 1969, Bonita has built a strong market position and brand awareness for best age women. The company’s retail store portfolio spans over six European countries.

In June 2020, Bonita applied for insolvency protection and appointed Roland Berger to lead the mergers and acquisitions process and lawyers from GOERG and Schultze & Braun were instructed to support Bonita’s management in its self-administration.

Following numerous discussions with the management, its advisors and a competitive tender process, Gordon Brothers was successful in the bid to run the store closures.

The pan-European project includes the closure of a significant number of unprofitable retail stores across Germany, Austria and the Netherlands, over 30 million euros of retail inventory and intake of the distribution centre inventory. The vast majority of Bonita’s over 600 stores will remain open and continue to re-build Bonita’s focus on its key customers.

Additionally, the project will include the disposition of furniture, fixtures and equipment and the opportunity to purchase and sell augment inventory.

“We’re proud to support the team at Bonita with their restructuring plans while preserving the integrity of their brand as they continue to trade,” said Olaf Galler, Gordon Brothers Managing Director, Europe Retail.   

Karsten Oberheide, Bonita CEO, agreed stating they are pleased to work with a professional retail expert like Gordon Brothers.

“Gordon Brothers helped us leverage millions of retail inventory of Bonita and support the required restructuring while at the same time preserving the integrity of the strong Bonita brand,” said Oberheide.

Gordon Brothers have proven experience in the retail fashion sector having globally managed projects like Bonita involving over 100,000 stores and 3 billion euros of inventory at retail value, making the retail team well  positioned to successfully complete this major pan-European project.

For more information, please contact Olaf Galler at [email protected]



About Gordon Brothers

Since 1903, Gordon Brothers ( has helped lenders, operating executives, advisors and investors move forward through change. The firm brings a powerful combination of expertise and capital to clients, developing customized solutions on an integrated or standalone basis across four service areas: valuations, dispositions, operations and investments. Whether to fuel growth or facilitate strategic consolidation, Gordon Brothers partners with companies in the retail, commercial and industrial sectors to put assets to their highest and best use. Gordon Brothers conducts more than $70 billion worth of dispositions and appraisals annually. Gordon Brothers is headquartered in Boston, with 25 offices across five continents.


About Bonita

The fashion brand BONITA, founded in 1969, creates easy to combine fashion for female customers in their best age. The ability to combine high-quality garments with ever new outfits is the heart of BONITA’s clothing line and the basis for

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