The Ghost of Retail's Past Still Haunts Ohio
The Southern Park Mall in Boardman, Ohio, had a rough Monday. Employees showed up to locked doors, citing "operational safety concerns." Then, a delayed opening at 12:30 p.m., and tenants weren't even required to open after that. The fire department even showed up to make sure no one was trapped inside. It's not exactly a vote of confidence for the future of retail in the region.
Kohan's Communication Problem: A Pattern?
The mall's ownership, Kohan Retail Investment Group, isn't exactly inspiring confidence either. Township administrators and residents have voiced concerns about a lack of communication since Kohan took over in December of last year. And it's not just talk; there's a "spotty record" of Kohan properties deteriorating, and, oh yeah, they've apparently failed to pay their taxes.
It's a classic case of retail mismanagement, or at least, that's the initial read. But let's dig a little deeper. What exactly are these "operational safety concerns?" We're not told. And why the communication blackout? It's almost as if the less they say, the better. (Which, in some legal situations, might actually be the case.)
It's interesting to note the timeline here: Kohan acquired the mall in December, and within a year, we're already seeing signs of trouble. That's not to say Kohan is solely responsible (the rot in retail has been setting in for years), but it certainly doesn't paint a pretty picture. Are they simply in over their heads, or is there a more deliberate strategy at play? I've looked at hundreds of these filings, and this kind of rapid decline is unusual, even in the struggling retail sector.
The Broader Context: Retail's Existential Crisis
Let's zoom out. Malls across the country have been struggling for years, casualties of the shift to online shopping and changing consumer habits. Southern Park Mall isn't unique in this regard. But the specific issues—the delayed paychecks, the lack of communication, the "operational safety concerns"—suggest a deeper level of dysfunction.
The news reports mention that major anchor stores like JCPenney and Macy's were open as usual, with their own separate entrances. The problem was with the mall concourse itself. This suggests the underlying infrastructure of the mall is failing. Southern Park Mall reopens Monday afternoon after unexpected closure
The real question is whether Kohan has a viable plan to turn things around, or if they're simply milking the property for whatever it's worth before it collapses entirely. Given their track record, I'm leaning towards the latter.
And this is the part of the report that I find genuinely puzzling: Why would a company with a history of letting properties deteriorate even bother acquiring a struggling mall in the first place? Is it simply a real estate play, with the intention of redeveloping the land for other purposes? Or is there some other financial incentive at play that we're not seeing?
