General Growth Properties files for bankruptcy protection

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It’s a familiar story: A shopping spree during good times leaves lots of debt that can’t be refinanced in bad times, sending the borrower skidding into Bankruptcy Court.

This time the bankruptcy filer is General Growth Properties, which owns a bunch of prominent malls. The company was hit by months of shopper stinginess, loss of tenants and tons of debt.

In Southern California, General Growth’s stable includes Glendale Galleria, Burbank Town Center, Fallbrook Center in West Hills, Northridge Fashion Center and SouthBay Pavilion in Carson. Some of its trophy shopping centers are Tysons Galleria in McLean, Va., Faneuil Hall in Boston, Water Tower Place in Chicago and South Street Seaport in Manhattan.

For now, it’s business as usual, the Chicago company says. But real estate experts say the company could be forced to close some malls and unload others on the cheap.

UPDATE: The Glendale Galleria and Burbank Town Center are among the approximately 50 (out of more than 200) properties that weren’t included in the bankruptcy filing because General Growth just manages the property or owns it with others.

-- Nancy Rivera Brooks