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December 9, 2008 | 7:36 pm
Dark days for Jewish owners of Chico Mall
Posted by Dean Rotbart
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One of the nation’s oldest real-estate dynasties, and once one of its richest, has seen its wealth implode from $3.2 billion in June 2008 to about $116 million today. And a possible bankruptcy looms.
The Bucksbaum family, founders and major shareholders of Chicago-based General Growth Properties, are the subject of a gloomy front page report in today’s The Wall Street Journal.
“The family could lose General Growth altogether, along with three generations of hard work that began with a grocery store in Iowa,” reporters Robert Frank and Kris Hudson write. Already, John Bucksbaum, the son of one of two founding brothers, has been forced to resign as Chief Executive Officer by the company’s board.
General Growth Properties (GGP), which is a publicly traded Real Estate Investment Trust, has financial interests in shopping malls in 44 states, including nearly two dozen in California. Among GGP’s in-state properties (managed or owned) are Burbank Town Center, Glendale Galleria, Montclair Plaza, Northridge Fashion Center and Chico Mall.
John Bucksbaum’s father Matthew, and his uncle, Martin launched the company in 1954 when they built a shopping center in Cedar Rapids, Iowa and operated their family’s grocery business from it.
The brothers went on to successfully develop and manage shopping centers and malls and amass a personal fortune.
Matthew, now 82 and listed as chairman emeritus of the GGP board, is a past president of Temple B’nai Jeshurun in Des Moines and a 1999 recipient of the Human Rights Medallion Award from the Chicago Chapter of The American Jewish Committee. In November 2006, Matthew made a $1 million pledge to Hillel at the University of Iowa. Matthew’s brother, Martin, died in his sleep from a heart attack in 1995.
Today’s financial crisis can trace is roots to 2004 when the Bucksbaum’s GGP paid $12 billion in cash and debt to acquire Rouse Co., which owned 37 upscale malls, including Las Vegas’s Fashion Show Mall. Other showcase properties in the newly combined portfolio include Water Tower Place (Chicago), South Street Seaport (Manhattan) and Faneuil Hall (Boston).
The Journal says that GGP has $900 million in loans due this Friday, December 12, 2008, and an additional $3.1 billion due in 2009. In total, the company is carrying more than $27 billion in debt and facing a severe cash flow squeeze. The company’s stock price has fallen more than 97% in the past year, the Journal notes.
John Bucksbaum, whose sister Ann is married to New York Times columnist and bestselling author Thomas L. Friedman, is on the Advisory Board of the Chicago Chapter of the American Jewish Committee. John’s other board memberships include the University of Chicago Hospitals and The Field Museum. His two children, Max and Eli, attend The Latin School in Chicago.
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GGP was a great company and worthy of much praise for it community service work. The purchase of Rouse is the culprit in this probable disaster. Losses are massive and
high end malls are not drawing crowds. Not a good outcome. 2009 looks even worse.
everyone involved with rouse over the years has gotten nailed by the association
John Bucksbaum is a bum - he’d be a cab driver if it were not for who his father is
No doubt that GGP was a great company. Hope they will improve their internal affairs. Thanks for sharing. Please continue your brilliant work.
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This is so bad. The economy is so bad now that it is killing everybody. everybody is going to be broke before it is over.
how much is my house worth
Well it looks like there is a dark day indeed.
Well I hope they will find light in these times of misery.
In every darkness that we will face, at the end of that darkness comes light!
GGP was a great company and worthy of much praise for it community service work.Thanks for sharing. Please continue your brilliant work.
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This sure is getting to be a familiar story. Sure hope it things get better soon!
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I agree with the above post, a few years ago this would have been major news. Today, it’s just news…
Robert ~ Life Coach
I hope the dark days are now over..
There will always be a way out of the darkness!
a sign of the times
Ups and downs in business..
I second that!
Everyone goes through the same downfall, all that matters is, we learn to stand up and rise up again!
Hope they will find light in these times of misery and keep in mind that there will always be a way out of the darkness.
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We can never be assured that our business will always stay on top..But no matter what, the most important thing to remember is “Never Give Up the Fight!”
GOD I LOVE MONEY AND I LOVE BEING A MONEY GRUBBING JEW. ALL I CAN THINK ABOUT IS MAKING MONEY AND SHAFTING THE GOYS. WHEN I DIE I WANT TO BE BURIED IN A COFFIN FULL OF MONEY, MY RELIGION IS GREAT BECAUSE MONEY IS AT IT’S CENTER. THANK GOD FOR SWEET SWEET MONEY AND ALL THE PEOPLE I CAN IMPRESS WITH IT. THE BIG JEW.
Everyone lose money during recession. This family is good at business, everything will be alright.
This is extremely sad yet another tragedy of this deep recession. I live in Houston ,Tx and let me tell you there are so many large shopping centers which are becoming vacant each day. Hopefully, things will start turning around for the entire world within the next 12 months ( lets hope)
I guess the days has ended up now.
Everyone is involved in to be get nailed by the association.
The commercial real estate will be the next market to go south.
There will always be a way out of the darkness! Riots broke out in Worms (Germany). Many Jews fled to Heidelberg. Others in desperation set fire to their homes or were murdered. An estimated 420 people died that day. Their property was seized by the town.
Never lose hope, if there a will, then definitely there’s a way!
Whatever it is that we are going through, we must always be strong and hope for the best.
The outlook for the 2nd half of 2009 looks bleak.
Don’t worry, Obama will save us all. It’s bound to come back sooner or later. Until then I will continue to not be able to go to theCaribbean Weddings that my friends are planning. Oh well, no open bar in my near future.
Eliminating debt in bankruptcy court is half the battle, now they have to deal with the falling commercial RE prices.
Problems do come but don’t lose hope.Just be strong and take courage on what you do.
I am having a mild lower abdomen pain. Does this mean i am pregnant or something wrong in this?
I would say that this is pretty sad.
Mike - the buy grow taller 4 idiots dude.
Oh, it was sad to read it. I just want to wish you not to lose hope.
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thank you admin
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This is an excellent article..
You informed me!& What is debt?
Thank you!))
I heard that Trump is actively looking at this so my guess is that his empire’s about to grow again!
It shows how precarious business is in this difficult market…
Do you think this company gonna survive? If CEO has assets worth billions then it can be possible but no one now a days wants to loose the assets of life so… this is the end I think
its amazing how far some of these real estate values have fallen.
they will rebound but nowhere near their previous highs
How easy is it to lose so much in property and real estate values? In Saint Tropez prices have not fallen and if anything are improving so they should have bought here
Bankruptcy protection also usually refers to a type of bankruptcy where the company is protected from creditors for a period of time.
we can not stop it, the company need to know the result.
This is sad to hear.
Thanks for a wonderfully written and informative post. The examples really bring the concepts to life.
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I guess the days has ended up now, don’t worry about it too much.
This is sad news. I hope the Chico Mall will bounce back.
Thanks admin ays has ended up now, don’t worry about it too much.
Comment by Diamond Blades on 2/02/10 at 9:22 am
This is sad news. I hope the Chico Mall will bounce back.
Comment by Pitt Street Mall on 3/08/10 at 2:29 pm
That is so funny.
It is sad but you should not worry.
There’s always light at the end of the tunnel. No fear.
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It’s sad to see such an established organization fall apart.
I totally agree with you, all emails because I have eaten at work most of my time. Not only that, but usually feel obliged to reply that spends more time and resources.
It’s just a trial for their family they have reached that kind of wealth and it’s not impossible to be reach it again. There’s always a thing called second chance.
This is a great resource and gives you a gift. I love seeing websites that understand the value of providing a quality resource for free. It’s the old what goes around comes routine.
Thanks for so interesting a post. Keeping a journal is a wonderful thing for sure. You can see the progress on some things as you read it and see how this is to know. It can help achieve other important goals in your life. Personal development is much easier with a personal diary. Thanks again for the great input and continue to publish some so nice in the near future.
This is an excellent article..
It will be a great stuff for my writing!
$3.2 billion in June 2008 to about $116 million today. And a possible bankruptcy looms.
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yeah those guys might definitely be considered crazy and extraordinary! That’s what essays for sale were saying about all of them. I guess that might be true!