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THE PINES LANDS NEW TENANT, GETS MAINTENANCE FUNDS APPROVAL FROM BANKRUPTCY COURT

By Amy Riggin/OF THE COMMERCIAL STAFF
Friday, July 24, 2009 10:04 PM CDT

Although its owner filed for bankruptcy in April and it has seen a loss of tenants recently, The Pines mall has some good news to report: A new tenant and about $100,000 in building maintenance scheduled for the fourth quarter.

The Pines mall manager Kandy White said Wilkerson’s Gold Buying Center has opened on the Dillard’s end of the mall next to Regis hair salon. According to her, the U.S. Bankruptcy Court, Southern District of New York had approved the release of “in excess of $100,000” to perform maintenance on the property. Pine Bluff Commercial/Ralph Fitzgerald

Mall manager Kandy White said Wilkerson’s Gold Buying Center has opened on the Dillard’s end of the mall next to Regis hair salon. She added that tenant recruitment efforts are ongoing.

“It’s business as usual — nothing has changed as far as our business practices,” she said when asked how the bankruptcy has affected The Pines. “We’re still recruiting businesses to come to the Pine Bluff area and day-to-day operations are the same as they were when I started here 20 years ago.”

Kandy Jordan, marketing director for Stuttgart-based Wilkerson Jewelers, said Wilkerson and Associates opened gold-buying centers in The Pines and McCain Mall in North Little Rock this month.

“We saw it as an opportunity because we do have customers in the Pine Bluff area who come to Wilkerson Jewelers here in Stuttgart,” Jordan said, adding, “As jewelers we feel like, with our knowledge and experience and resources, we can assure a fair and honest price.”

Scott Banasiewicz is manager of Wilkerson’s shop in The Pines.

Asked for details on other potential new tenants, White declined to give any but did say “there are always prospects — things are in the works.”

Though she did not provide specific dollar amounts, White said The Pines’ year-over-year sales are up, along with customer traffic.

“We’re excited,” she said.

As far as owner General Growth Properties’ bankruptcy proceedings, White said the U.S. Bankruptcy Court, Southern District of New York had approved the release of “in excess of $100,000” to perform maintenance on the property.

“You’ll see some painting going on, refinishing the benches, roof repairs,” she said, adding that the work will be done during the fourth quarter.

The Chicago-based company had assets of $29.6 billion and liabilities of $27.3 billion as of Dec. 31. It owns some 200 shopping mall properties.

“The whole [bankruptcy] issue has been the credit markets,” White added. “The mall’s not in any danger of closing. The company is not in any danger of going away.

“It’s just financing issues. The credit market has dried up and it’s tough.”

The filing was part of a bargaining move to restructure General Growth’s $27 billion in debt.

Shares of General Growth (Public, OTC:GGWPQ) closed up 9 cents Friday at $1.86. It was delisted from the New York Stock Exchange in April after the filing.

A month after the mall’s owner filed for Chapter 11, the parent company of one of The Pines’ major restaurant tenants did the same.

Eateries Inc. of Edmond, Okla., a privately-held company, is parent to Garfield’s Restaurant & Pub and filed May 11, reporting liabilities between $10 million and $50 million and assets between $1 million and $10 million.

Chuck Drew, general manager of Garfield’s in the mall, said he could not comment on what impact, if any, the filing would have on the local restaurant, but did say it was “strictly reorganization.”

“We’re still here, if that tells you anything,” he added.

White noted that The Pines will retain its new store hours.

In March the mall began closing an hour earlier Monday through Thursday, at 8 p.m. instead of 9 p.m., after anchor stores Sears and JCPenney reduced their hours. Since then, General Growth conducted a consumer survey and determined that there was no need to go back to the later hours, White said.

The most recent tenant to move out of The Pines was the Armed Forces Career Center, which opened in the new Tower Center off South Olive July 16.

“It’s sad to see anybody leave, especially since most of the ones we’ve lost have totally left the area,” White said. “So Pine Bluff loses and Southeast Arkansas loses. It’s not great for the tax base, it’s not great for us — it’s not great for anyone.”

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