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Westfield faces lawsuit from American Eagle over San Francisco mall dispute


Sep 13, 2023

American Eagle has filed a lawsuit against Westfield, the owner of the San Francisco Center Mall, alleging that the mall’s deterioration has violated its lease agreement. American Eagle claims that Westfield has neglected the mall’s common areas, leading to issues such as gun violence, physical assault, and robbery that have affected its employees. American Eagle asserts that Westfield has not taken responsibility for the problems and is seeking compensation for the damages caused. Westfield has declined to comment on the lawsuit. The litigation is a common strategy for retailers seeking to break long-term lease agreements. American Eagle’s lease with Westfield is set to expire in 2028. Westfield had previously announced its intention to default on a loan and relinquish control of the mall due to declining sales, occupancy, and foot traffic. The closures of major stores like Nordstrom and Banana Republic have also contributed to the mall’s decline. San Francisco Mayor London Breed has proposed demolishing abandoned retail spaces, including Westfield Mall, and exploring alternative uses for the area. The city has experienced numerous store closures in recent years, attributed to factors such as remote work, online shopping, high rents, and increased homelessness. Property crimes and retail thefts have also risen in San Francisco’s downtown area over the past three years, causing additional challenges for retailers.

By Editor

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