Mall Owner Washington Prime Is Said to Prepare Bankruptcy Filing

Mall owner Washington Prime Group is preparing a potential bankruptcy filing as time runs out to avert a default after it skipped an interest payment on its debt, according to people with knowledge of the plans.

The real estate investment trust, which owns about 100 malls throughout the U.S., said last month that it would use a 30-day grace period to continue negotiations with its lenders. Yet those talks are faltering, said the people, who asked not to be named discussing confidential preparations.

The plan to file for Chapter 11 protection isn’t final and could change if negotiations evolve or ...