American Eagle Outfitters, one of the biggest stores at Union Square's Emporium Centre San Francisco, will close on July 12. The store, located at the mall's main entrance, will close its doors permanently.
As reported by Globest, this happened four years before the store's lease was set to end.
Last year, the mall went into receivership, a type of financial protection when a business fails to pay its debts. The retailer is also part of a lawsuit against the previous mall owners, Westfield.
They claim that Westfield did not address safety problems at the mall, which they say has affected their business.
Job Losses as American Eagle Closes Store
At least 52 employees at the American Eagle store in San Francisco's Emporium Centre will be out of work as the store prepares to close. According to a report from SFGate, this closure came nearly four years before the store's lease, which was due to expire on January 31, 2028.
This American Eagle location is only in San Francisco, making its closure particularly significant. Despite the impending shutdown, no closure signs are posted outside the store.
The decision to leave the mall, formerly known as Westfield San Francisco Centre, doesn't come as a surprise. American Eagle had previously sued the mall in 2023. The retailer accused the mall management of neglecting the building and failing to maintain safety, leading to severe security issues.
These incidents, occurring between May 2022 and 2023, reportedly included theft, violence, and dangerous situations involving customers with firearms and even a machete.
The lawsuit is still active, with a jury trial scheduled for February 2025, as per the latest updates from the Superior Court of California for San Francisco County, shared by SFGate.
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Retail Exodus Hits Emporium Centre, San Francisco
According to The U.S. Sun, several major retailers, including J.Crew and Nordstrom, have left the Emporium Centre San Francisco, preceding American Eagle Outfitters' planned departure.
J.Crew closed on January 22 without revealing the reasons for its closure, as local CW affiliate KRON-TV reported. Nordstrom closed earlier in August 2023, indicating reduced foot traffic and changes in the downtown San Francisco market's dynamics.
The departure doesn't stop with these brands. Cinemark Theaters, Hollister, Adidas, Lucky Brand, LEGO, and others have also vacated the shopping center. Moreover, the mall is set to lose its Ted Baker store following the company's bankruptcy filing in the United States and Canada.
Other stores, such as Madewell, Aldo, and Old Navy, are on the list of closures, and some have already closed. It remains unclear if these stores terminated their leases early with the Emporium Centre.
The trend of retail bankruptcies continues, with other clothing retailers also facing financial difficulties. Express filed for Chapter 11 bankruptcy in April and plans to close nearly 100 stores.
Similarly, Rue 21 has entered bankruptcy and plans to close all 540 of its stores. It is currently holding liquidation sales.
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