San Francisco's shopping landscape takes another hit as American Eagle Outfitters announces the early closure of its large storefront at the Emporium Centre, previously the Westfield San Francisco Centre. Scheduled to shut its doors on July 12, well ahead of its 2028 lease end date, the retailer cites criminal neglect and deterioration of conditions at the mall as the primary reasons for the abrupt departure. SFist details the closure will leave 52 employees jobless and add to the growing number of vacancies at the troubled shopping complex.
According to a lawsuit filed by American Eagle's parent company in September, the once thriving mall has become a hotbed for crime, with employees facing over 100 significant security incidents, including armed confrontations, between May 2020 and May 2023. The San Francisco Chronicle reports the retailer is holding Westfield, the previous mall owner-operator, responsible, citing a failure to maintain adequate security and alleging full property neglect after the pandemic began.
Before stepping away last summer, Westfield and their co-owner, Brookfield Properties, pointed fingers at the San Francisco city government, blaming a rise in criminal activity for the drop in mall foot traffic and sales. However, the lawsuit by American Eagle insists that the mall's management is equally to blame for the downturn. "Westfield cannot walk away from the harm that it has caused without consequence," the lawsuit, obtained by the San Francisco Chronicle, clearly states.
Despite departing from this once bustling San Francisco hub, American Eagle Outfitters has not suffered on a larger scale, reportedly earning $1.7 billion in the fourth quarter of the prior year—an impressive 12% increase from the year before. "We are entering 2024 with momentum and from a position of strength," Jay Schottenstein, the company's CEO, said in a statement highlighted by the San Francisco Chronicle. The company will continue serving Bay Area customers at other San Mateo, Concord, Livermore, and Pleasanton locations.
As the Emporium Centre grapples with filling its empty storefronts, Trident Pacific, experts in distressed assets, took over as court-ordered receiver last October. Recently, the new management has rebranded the shopping center, attempting to breathe new life into the property by acknowledging its historical roots as The Emporium. Several weeks ago, the SFist suggested a slight turnaround with "leased" signs at former vacant spaces, including the erstwhile Burberry store.
