Coronavirus: Fashion Valley, Premium Outlets Closed In San Diego

SAN DIEGO, CA — Simon Property Group announced Wednesday it will temporarily close all malls, outlets and mills in an effort to slow the spread of the new coronavirus.

In San Diego County, the Simon-owned sites include Carlsbad Premium Outlets, Fashion Valley and Las Americas Premium Outlets. All three locations will be closed through March 29.

Simon officials made the decision after extensive discussions with federal, state and local officials, "and in recognition of the need to address the spread of COVID-19," according to a statement released by the company.

"The health and safety of our shoppers, retailers and employees is of paramount importance and we are taking this step to help reduce the spread of COVID-19 in our communities," David Simon, Simon's chairman, CEO and president, said in announcing the temporary closures.

Malls across the country are facing what could be one of the scariest times in recent retail history as companies and governments race to protect shoppers from the ongoing new coronavirus outbreak.

Across the U.S., businesses are closing at a rapid pace. In some cases, companies choose to close individual stores or entire shopping centers for a period of weeks. In others, state governments are mandating that malls and other facilities close to the public.

This was the case Tuesday in New Jersey when Gov. Phil Murphy ordered all malls in the state to close by 8 p.m. New Jersey, according to the International Council of Shopping Centers, is the first state to order all malls to close.

"This is how we will be able to stay strong," Murphy said during a Tuesday news conference.

Malls, and the retailers within them, may have a tougher time staying strong.

Bigger mall owners such as Simon have more tools to cope with fallout. Simon said Monday it has already secured an amendment to an existing $4 billion credit facility to $6 billion, The Wall Street Journal reported.

Mall closures now, however, could spell certain defeat for struggling smaller malls that have lost one or more anchor department stores and where spaces have remained vacant, analysts told the Wall Street Journal, adding retailers could now face the kind of financial distress that may "push them over the edge," according to Lisa Pendergast, executive director for CRE Finance Council.