Bankruptcy Prevents Sale of the Isolated Crossings Mall in Elkview, WV

by San Antonio Attorney

The owner of Crossings Mall, which is located in Elkview, West Virginia, filed for Chapter 11 bankruptcy just before its sale, causing uncertainty to the future of the shopping center.

Only 20 minutes prior to a scheduled sale of the mall by a trustee, shopping center owner Bill Abruzzino of Tara Retail Group filed for bankruptcy in the Northern District of West Virginia.

Consequently, the trustee’s sale was canceled and the construction of a bridge along the way to the mall is expected to be delayed further.

Bankruptcy documents state that there are one and 50 creditors of the company.  The largest creditor is the U.S. Bank Association, which sued Tara Retail Group in 2016 for defaulting on a loan worth $13.6 million.

The default happened because Crossings Mall was unable to generate income through rental after the floods in June 2016 that shattered the only way to the shopping center.

Bankruptcy papers state that the company’s assets are within the range of $10 million to $50 million, which is similar to its liabilities.

In a news release, Kanawha County Commission President Kent Carper criticized the action of the company.

But the court appointed receiver of the mall expected the bankruptcy filing.  Martin Perry, the receiver assigned on the case by U.S. District Judge Thomas Johnston, said Tara Retail informed him, as well as the U.S. Bank attorneys, about the bankruptcy ahead of the filing.

Perry said Tara Retail’s move will indeed cause more delays but couldn’t confirm how long it would be.  But he expects to get answers from the bankruptcy court after 5-10 business days.

The judge will have to decide whether to reappoint him as the receiver for the bankruptcy case.  If Perry is not reinstated, someone else will be appointed.

Crossings Mall employed around 500 people before the flood last year.  They have been unable to come back to work since then.

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