"Our revenues have been affected by a number of large tenants which have recently filed for bankruptcy," explains chairman, president and CEO Gary J. Skoien. "We are moving aggressively to fill the vacated spaces with replacement tenants."
Bugle Boy, Warnaco and Paul Harris are among the REIT's tenants who have gone bankrupt.
"A large portion of the decline in revenue is associated with the properties which secure the JP Morgan loans," Skoien adds. "As was previously announced, we have commenced discussions with the goal of restructuring those loans."
Horizon began talks aimed at restructuring mortgages totaling $45.5 million on six centers in Daleville, IN; Traverse City, MI; Gretna, NE; Sealy, TX: Somerset, PA and Tulare, CA after rents there failed to cover October payments. The REIT is paying 8.46% interest on those loans.
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