A General Growth spokesman tells GlobeSt.com that he is familiar with the e-mail and would not confirm or deny its validity. The company, with about 4,700 employees, does not comment on personnel matters, he says.
The e-mail stresses that the cuts are not a result of "changes in the economy" or based on performance. "This is simply the next step in the evolution of a more effective organization," it says.
Changes in how mall owners market their properties have been in the works for years, says Alberta Davidson, a San Diego-based consultant who spent 25 years in marketing with former mall owner Hahn Co. Many firms have considered taking marketing responsibilities away from individual mall employees and consolidating them into corporate-office positions.
"As far as I know this is an unusual approach," she says. "I don't know of any other company that has done it to this large of a degree." Additionally, General Growth was honored last year with four MAXI Gold Awards by the International Council of Shopping Centers for marketing excellence at individual malls it either owns or manages.
General Growth is currently facing tough financial times. Its stock, which closed yesterday at $33.60, is well below its 52-week high of $67.43. The company has about $5.6 billion in debt maturing this year and next that has yet to be refinanced in a troubled credit market, though executives say that they are optimistic potential financing sources. Management also expects to take Q4 write downs on some of its residential land holdings.
General Growth operates about 200 malls across the country and has holdings in Brazil and Turkey. The company is scheduled this week to open the Shoppes at the Palazzo, a 440,000-sf luxury-retail project in the Palazzo resort, adjacent to the Venetian in Las Vegas.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
