General Growth to sell Fashion Show, other malls on the Strip

Single Sign-On: You can use Facebook account to log in to LasVegasSun.com. (We will use your first and last name from your profile.)
Trusted Commenting: Facebook connected users automatically become trusted commenters.

Economic slump forcing company to reorganize

Home News staff

Monday, Oct. 27, 2008 | 10:21 a.m.

A shakeup was announced Monday at General Growth Properties Inc. of Chicago, developer of the Summerlin planned community and owner of five Las Vegas regional malls.

The company said John Bucksbaum is stepping down as chief executive officer and that it will market for sale its Las Vegas Strip malls the Fashion Show, Grand Canal Shoppes and the Shoppes at the Palazzo. There was no immediate word on plans for the Boulevard and Meadows malls and the Shops at Summerlin Centre, which is under construction.

The company said Bucksbaum will remain as chairman of the board and will be replaced as interim CEO by Adam Metz, who is a founding partner of Polaris Capital LLC.

Thomas Nolan Jr. will serve as interim president, a position previously held by Robert Michaels. Michaels will continue to serve as chief operating officer and a senior officer of the company. In order to maintain a majority of independent directors, Michaels gave up his board seat.

General Growth said in a statement: "The company’s board of directors and management team, along with its financial and legal advisors, continue to be fully engaged in a comprehensive evaluation of all financial and strategic alternatives for the company, including but not limited to, asset sales, joint ventures, corporate level capital infusions and broader strategic business combinations."

General Growth has been hit hard by the economic slowdown, the credit crunch and its own heavy debt load. Its stock has fallen from a 52-week high of $54.53 to $2.34 Monday morning.