“Taubman has made the decision not to fund the negative cash flow, and we’re going to start talking to the lenders about restructuring the debt,” Lisa Payne, Taubman Centers’ chief financial officer, said in a telephone interview. The lender may end up owning the asset, she said.
This isn’t too surprising as foot traffic in Atlantic City casinos has been very slow over the past year and not very crisp since the shops opened a few years ago. Increased competition from other markets gave Taubman Centers enough of a reason to cut their losses.
I’m not sure what the future holds, but the perception of these shops is mixed. Some think the shops are too high end, while people like me just don’t shop when gambling. There are some cool restaurants and bars, but the 2-1 comp rate from Caesars makes it disadvantageous for me to eat and drink there.
Having these shops become deserted would be a bad look for Atlantic City and an eyesore to consumers. I would think something would happen to keep the shops open with hopes that the economy turns and things get better for Atlantic City in the next few years.
In the meantime, I’ll keep my business elsewhere and save my comps for places that aren’t 2-1.
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That place has really grown on me during the past couple of years, especially the 3rd floor with the eateries. Trinity Irish Pub is head and shoulders above the ‘other’ Irish Pub that people seem to love. Game On is a nice place to catch a game (my buddies and I usually seem to end up there watching playoff baseball during our annual October trips). I always bring something from Itsugar back for my wife and I’ve been known to use the Apple store to check my email. In short, I’d hate to see it go under.