Apparel giant American Eagle has filed a lawsuit against the former operators of Westfield Mall in downtown San Francisco, alleging it breached lease agreement by failing to maintain the property, allowing it to 'deteriorate into disarray,' which the retailer said, resulted in the company and its employees being victimized by criminal activity.
In June, Westfield and Brookfield announced it would default on their $558 million loan on the property after more than 20 years of successfully operating the site. , Westfield said it was a difficult decision, but that "challenging operating conditions" in the city's downtown led to a decline in sales, occupancy and foot traffic.
The complaint also noted that the mall operator had the means to make investments to the site, and had proven that at its properties including its Westfield Valley Fair Shopping Center in San Jose, which received a $1.1 billion expansion and saw subsequent record sales.
American Eagle has remained at the shopping center and has not indicated plans to shutter that location. The Pittsburgh, Pennsylvania-based retailer said it has taken steps to protect the store and its workers by closing access to the street front entrance on Market Street and hiring additional security officers.
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