Following a series of bankruptcy declarations by many stores and businesses in the midst of the coronavirus pandemic, two major mall owners have now joined those who have declared bankruptcy during the pandemic. Mall owners CBL & Associates Properties, Inc. and Pennsylvania Real Estate Investment Trust, or PREIT (PEI  ) recently declared bankruptcy, likely led in part by some of their largest tenants also declaring bankruptcy earlier this year, including J.C. Penney, Tailored Brands, and Ascena Retail Group.

"After months of discussions and consideration of a number of alternatives, CBL's management and the Board of Directors firmly believe that implementing the comprehensive restructuring ... will provide CBL with the best plan to emerge as a stronger and more stable company," said Stephen Lebovitz, CBL & Associates CEO.

These filings for bankruptcy protection comes during a time when mall operators have been struggling during the pandemic as consumers have moved in a clear trend toward preferring e-commerce in lieu of shopping in person. According to a Coresight Research survey of 419 people, the public places consumers are avoiding the most include malls.

CBL & Associates listed assets and liabilities between $1 billion and $10 billion, according to a filing with the U.S. Bankruptcy court for the Southern District of Texas. The Tennessee-based mall owner operates 107 properties, including outlet centers, in 26 states.

In contrast, PREIT operates 19 malls, with a difference of 44.2 square feet compared to CBL & Associates. The bankruptcy of PREIT includes a financial plan to "recapitalize the business and extend the company's debt maturity schedule." The plan ensures $150 million in funding.

These types mall owners haven't historically brought in as many sales per square foot as A-rated properties, such as those owned by the largest U.S. mall operator, Simon Property Group (SPG  ).

As numerous mall tenants have been unable to pay rent, and with many having already filed for bankruptcy, time will tell how this continuous trend of bankruptcies in retail will impact this sector of the economy. The bankruptcy of PREIT may affect the Commonwealth of Pennsylvania the most, as PREIT is the largest mall owner in the state.