Washington Prime Group (WPG), once a leading name in U.S. retail real estate, is winding down its operations and exiting the sector entirely, driven primarily by the looming maturity wall of nearly $1.1 billion in commercial mortgage-backed securities debt coming due between May and November 2025. This debt overhang, combined with the broader challenges facing the mall sector, has forced WPG to divest its remaining portfolio of shopping centers and implement a two-phase layoff of 139 employees at its Ohio headquarters, with cuts starting in June 2025 and concluding by March 2026.
The urgency of WPG’s wind-down is closely tied to the financial pressures created by the upcoming loan maturities. Final notices have already been issued on the earliest maturing loans, and the company’s ability to refinance or restructure this debt in the current market environment has been severely constrained.
WPG’s decision to exit the business follows a drawn-out recovery effort that began after its 2021 Chapter 11 bankruptcy filing, which was itself a response to the pandemic-induced retail shutdowns and the resulting wave of tenant closures and rent delinquencies. The bankruptcy process allowed WPG to reduce its debt by nearly $1 billion and transition to private ownership under SVPGlobal, but the company continued to face sector headwinds and asset sales have accelerated as the maturity wall approached.
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In the past year alone, WPG has sold roughly half of its portfolio, bringing the current count to about 50 properties. All of which are now on the market or soon will be. Recent transactions include the sale of four grocery-anchored centers to Brixmor for $211.8 million in December and an outlet center in Auburn, Washington, for $82 million in October.
The layoffs will impact not only rank-and-file staff but also top executives, including the chief financial officer, chief legal officer, and head of leasing.
WPG’s wind-down is emblematic of the broader consolidation and transformation underway in retail real estate. The company is one of three major mall REITs that sought bankruptcy protection during the pandemic, alongside PREIT and CBL Properties. While some competitors, such as Simon Property Group, have managed stronger rebounds, the sector remains under pressure from shifting consumer habits and the aftershocks of pandemic-era disruptions. Despite these challenges, investor interest in open-air shopping centers remains strong, with many landlords able to reposition properties or find new tenants as vacancies emerge.
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