8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): July 14, 2003

HORIZON GROUP PROPERTIES, INC.

(Exact Name of Registrant as Specified in Charter)

Maryland	0-24123	38-3407933
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
77 West Wacker Drive, Suite 4200 Chicago, Illinois		60601
(Address of Principal Executive Offices)		(Zip Code)
Registrant’s telephone number, including area code:  (312) 917-8870
N/A
(Former Name or Former Address, if Changed Since Last Report)

ITEM 5.  Other Events

The shares of Horizon Group Properties, Inc. (the “Company”) are currently listed on the NASDAQ SmallCap Market (“NASDAQ”).  Based on shareholders’ equity as of December 31, 2002 and March 31, 2003, the Company did not meet NASDAQ’s financial requirements for continued listing.  The Company has been working with NASDAQ and has been granted an extension to July 25, 2003 to meet these requirements.  In connection with this extension, the Company agreed to certain requirements including filing with NASDAQ and the SEC an unaudited condensed consolidated balance sheet as of May 31, 2003 indicating that, as of that date, the Company is in compliance with the requirement of having at least $2.5 million of shareholders’ equity.  There can be no assurance that the Company will continue to meet the NASDAQ requirements applicable to the listing of its shares.

The Company’s unaudited condensed consolidated balance sheet as of May 31, 2003 is attached hereto as an exhibit.

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ITEM 7.  Financial Statements and Exhibits.

(c)Exhibits.

Exhibit Number	Description
10.109	Horizon Group Properties, Inc. Unaudited Condensed Consolidated Balance Sheet as of May 31, 2003

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HORIZON GROUP PROPERTIES, INC.
Date:	July 16, 2003	By:	/s/ David R. Tinkham
		Name:	David R. Tinkham
		Title:	Chief Financial Officer and Secretary

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EX-10.109

Exhibit 10.109

HORIZON GROUP PROPERTIES, INC.
Condensed Consolidated Balance Sheet
(unaudited)

	May 31, 2003
ASSETS
Real estate – at cost:
Land	$	8,591
Buildings and improvements	84,358
Less accumulated depreciation	(14,216		)
Total net real estate	78,733
Cash and cash equivalents	561
Restricted cash	3,842
Tenant accounts receivable, net	3,807
Real estate – discontinued operations	15,247
Deferred costs (net of accumulated amortization)	2,127
Other assets	2,190
Total assets	$	106,507
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgages and other debt	$	92,924
Accrued interest	5,223
Accounts payable and other accrued expenses	2,126
Prepaid rents and other tenant liabilities	875
Other liabilities	1,046
Total liabilities	102,194
Minority interests	1,658
Shareholders’ equity:
Common shares ($.01 par value, 50,000 shares authorized, 2,870 issued and outstanding)	29
Additional paid-in capital	17,552
Accumulated deficit	(14,926		)
Total shareholders’ equity	2,655
Total liabilities and shareholders’ equity	$	106,507

Note - The condensed consolidated balance sheet includes the accounts of the Company’s subsidiary, Horizon Group Properties, L.P., and other wholly owned subsidiaries and is prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, it does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements, and, therefore, should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2002, the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2003 and the Company’s Current Reports on Form 8-K filed since January 1, 2003.