DURHAM, N.C. — The inside of Northgate mall is closing for good after its financial burdens became too heavy during the coronavirus.
Northwood Retail LLC, which owns the mall, released a statement that said, “The severe impacts of the COVID-19 pandemic has caused extreme financial difficulties for their tenants and property.”
The outside of the mall plans to reopen when it is safe, according to a spokesperson.
The businesses that were once in Northgate Mall will be connected to small business support services, the spokesperson said.
The move to permanently shut down the mall blindsided business owners. On Friday, tenants of the mall received an email stating the mall was closing for good and they must leave.
“For us to get those emails, it was just, 'What do we do now?'” asked Mavis Peaks, the owner of Endivo Hair salon.
“I’ve cried since Saturday, but I haven’t cried in two days," said mall tenant Shae Ramirez. "I’ve been there nine years. It’s just a lot. It’s memories, and I’ve put a lot of work and a lot of money into our space, and it’s just heart wrenching. I’m dealing with and I know I’m going to get through it but it’s so much to think about and it’s immediately and they just kicked us on the street like dogs.”
Ramirez said while they are offering to help with support services, she demands more answers as now she’s not only dealing the pandemic but the hassle of moving during the chaos. “Not only terminated the tenant’s leases, but they also terminated several employees that were left at the mall. They fired the mall office; the mall office did not know they were getting fired," Ramirez said.
Northwood Retail states this decision was not made lightly, and it will help mall tenants to provide relief for the duration of their leases and connect them with small business support services.
The email Ramirez received states that Northwood Retail will waive rent this month through the end of her lease and hold a virtual town hall meeting with local small businesses to help navigate the transition.
But Ramirez says after doing business with Northgate for nine years, more needs to be done to help her and others in her shoes. “You can’t go out and get a job right now," she said. "We can’t just go out and get a space right now. I mean everything is just bad timing and a bad situation. It’s just heartless to me that they would do this.”
While many are shocked and don’t know what the future holds, NC State economics professor Steve Allen tells us this move didn’t come as a surprise to him. “COVID-19 is making their situation worse," he said. "Look at this form the perspective of the owners of the property. People are afraid. Even if Gov. Cooper today all the stores can open go out and shop, I don’t think he’s going to see many takers.”
When the pandemic is over, Allen believes there will be fewer malls in the Triangle. “I don’t think Northgate is going to be the last mall to close in this area,” he said.
But Allen is certain something beneficial will take Northgate Mall’s place. “I am confident in another five years you’ll see something there, but goodness knows at this time,” he said.
In January, a developer with Northwood Ravin wanted to transform the mall into a mixed used area where people can live work and play. He has not yet responded to WRAL's interview requests
