Preit, Owner Of Plymouth Mtg. Mall, Warned By NY Stock Exchange

PLYMOUTH MEETING, PA — Preit, the owner of the Plymouth Meeting Mall and several other major greater Philadelphia-area shopping outlets, is facing significant financial trouble in the wake of the coronavirus shutdowns.

The company was recently warned by the New York Stock Exchange that the trading price of its stocks must rise over $1, or it will be kicked off the exchange. Companies are required to maintain a minimum level of $1 per any 30-day trading period, according to NYSE.

Preit has six months from the date of the warning — Sept. 25 — to get its stock back up over $1. It's been as low as 55 cents in recent weeks. The company acknowledged receipt of the warning in a statement Thursday, saying they intended to regain compliance with the NYSE and striking an optimistic tone that they could right the ship.

"Preit continues to take action to enhance the financial and operational health of the business as we navigate the challenging environment of retail disruption caused by the COVID-19 pandemic,” the CEO of Preit, Joseph F. Coradino, said in a statement.

Delisting would be a devastating blow to the company, and would cause a significant devaluation in stock for any shareholders.

The company said they have a number of initiatives planned to help right their financial footing, including a $25 million increase in their liquidity facility, or money lent to the company for a specific period of time. "We expect to continue to engage constructively with our bank lenders," Coradino added. He said Thursday that Preit received another 30-day extension from their lenders on a $30 million loan they were originally given back in August.

In early September, the company abandoned a planned sale and leaseback of four of its malls, due to the pandemic.

Preit said that across all of their properties, four percent of their tenants failed to reopen following the coronavirus shutdowns, calling it a "substantial re-occupation." Still, it hasn't been enough to offset a $29.2 million loss for 2020 as a result of the shutdown.

Under Preit's ownership, Plymouth Meeting Mall has reinvented itself, despite the nationwide drop in brick and mortar shopping and hefty competition from the much larger and much more famous nearby King of Prussia Mall.

Several old anchor stores vacated Plymouth Meeting, and a host of new businesses focused on "lifestyle" moved in. That has included gyms, restaurants, bars, a Whole Foods, an interactive escape room, Legoland Discovery Center, and more. Dick's Sporting Goods, Edge Fitness, and Burlington all opened there within the past year and a half.

In Montgomery County, the company also owns the nearby Willow Grove Park, which has also seen significant expansion and growth in recent years. Both malls reopened in late June as the county moved into the green phase of Gov. Wolf's COVID-19 reopening plan.

In addition to Plymouth Meeting Mall and Willow Grove Park, Preit also owns the Springfield Mall, Fashion District in Philadelphia, the Moorestown and Cherry Hill malls in nearby South Jersey, and numerous other properties on the East Coast.