General Growth to sell Strip properties

Economic slump forcing company to reorganize

From staff reports

Published Monday, Oct. 27, 2008 | 10:39 a.m.

Updated Monday, Oct. 27, 2008 | 10:54 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.

General Growth announced that it plans to sell its highly lucrative retail properties in Las Vegas, including Fashion Show Mall, the Grand Canal Shoppes at the Venetian 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 also said John Bucksbaum is stepping down as chief executive officer. 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.

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By stevem

Oct. 27, 2008

11:21 a.m.

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Like I have posted before...

These guys know it's going to be a horrible retail season and they want to cut and run out of Las Vegas.

There will be mass retail closings in these malls in January.
By tvegas

Oct. 27, 2008

4:57 p.m.

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Sell? to who?
By lvconcerned

Oct. 27, 2008

7:19 p.m.

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When I was looking for a job at the Fashion Show mall quite a few of the employees were talking about that their not hiring, that their firing and that business is slow

Same thing at the Venetian

Thanks to your gov't officials

Vegas always gets the least amt of help

http://forgottenvoice.org
By spartacus84

Oct. 27, 2008

7:47 p.m.

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$54.51 to $2.34. Time to change the name to General Loss.
By spartacus84

Oct. 27, 2008

7:48 p.m.

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Make that $54.53 (with my two cents put in).
By Shanem21

Oct. 27, 2008

9:11 p.m.

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spartacus84...I created an account just to compliment and commend your chin-up sense of humor and decorum in the face of...
By RPJ

Oct. 29, 2008

9:31 a.m.

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Nobody is more cynical or miserable than an anonymous Internet commenter. We're in tough times now, but eventually we'll be in good times again. Celebrating failure is no way to move forward. You guys should get a hobby. Or try exercising to work out that anger.
By azsk8fan

Oct. 29, 2008

10:36 a.m.

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Who can afford the prices at most of the high end stores anyway? Rich tourists maybe? But where are the rich tourists? Who in their right mind shops at the Venetian for anything more substantial than a souvenier when they know the price is at least tripled just because it's being sold inside a casino mall store?
By RPJ

Oct. 29, 2008

9:33 p.m.

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The idea that prices at the Strip malls are inflated is simply not true. Prices at Guess, Banana Republic, Armani Exchange et al are THE SAME whether you buy the item at the Meadows or on the Strip. Stop spreading B.S.!