- The Washington Times - Thursday, February 23, 2006

ASSOCIATED PRESS

Arlington mall developer Mills Corp. announced yesterday that it has hired financial advisers to explore a possible sale of the company and is cutting jobs as part of a corporate restructuring.

The restructuring will result in the loss of 77 jobs. The company employs about 1,100.

The real estate investment trust has been forced to restate and lower its earnings recently. The company said yesterday that it does not expect to meet a March 16 deadline for completion of its 2005 annual report. It warned that its earnings guidance for 2005 is not reliable and that earnings will be much lower than expectations.

The company hired Goldman Sachs Group and J.P. Morgan to “explore strategic alternatives” and said a sale of the company is one option under consideration.

The company also hired a new chief operating officer, Mark S. Ordan, now chief executive for Balducci’s, a specialty food chain in the Mid-Atlantic region.

The Mills Corp., which reported $832 million in sales in 2004, has been working to secure financing for several large projects, including the $1.3 billion Xanadu retail-entertainment complex at the Meadowlands in New Jersey.

The company owns 42 properties in the U.S., Canada and Europe, including Potomac Mills in Virginia, Arundel Mills in Maryland and Opry Mills in Nashville, Tenn.

Shares of the company fell 20 cents to close at $41.13 yesterday on the New York Stock Exchange.


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