San Francisco loses another large downtown business as city's troubles mount
Cinemark shuttering San Francisco theater, citing city's 'local business conditions'
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Cinemark Holdings, Inc. is shuttering its downtown San Francisco theater, becoming the latest major firm to high-tail it out of the troubled California city.
"Cinemark can confirm it has decided to permanently close the Century San Francisco Centre 9 and XD theater shortly before the conclusion of its lease term following a comprehensive review of local business conditions," a spokesperson for the company told FOX Business in a statement.
General view of the Westfield Century Theatres in San Francisco, California on Wednesday, June 14, 2023. (Flightrisk for Fox News Digital / Fox News)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CNK | CINEMARK HOLDINGS INC. | 36.02 | +1.50 | +4.35% |
The theater is located in the Westfield San Francisco Centre, whose owner, shopping center giant Westfield, announced Monday it would be handing the property back to a bank due to "the challenging operating conditions in downtown San Francisco."
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The mall remains operational amid the search for a new buyer, but Westfield said prior to Cinemark's announcement the property would only be 55% leased when Nordstrom packs up from the location at the end of August as part of the high-end retailer's recent decision to close both its downtown San Francisco locations due to the "dynamics" of the area.
Shoppers leave the Westfield San Francisco Centre in San Francisco on April 13, 2022. Westfield announced this week it is handing the property back to a bank, citing "challenging operating conditions in downtown San Francisco." (Justin Sullivan/Getty Images / Getty Images)
Westfield's other properties are 93% leased, on average.
Westfield's decision came days after major hotelier Park Hotels & Resorts announced it had stopped making payments on a $725 million loan for its Hilton San Francisco Union Square and Parc 55 San Francisco properties, pointing to several "major challenges" in the city.
The stream of departures comes amid a growing exodus of retailers fleeing downtown San Francisco for various reasons as the city continues to struggle with retail theft, homelessness and a raging drug crisis.
A homeless encampment along Willow Street in the Tenderloin district of downtown San Francisco is seen on Feb. 24, 2022. A stream of major businesses have announced they are leaving San Francisco's downtown area as the city grapples with crime. (Gary Coronado/Los Angeles Times via Getty Images / Getty Images)
Following Westfield's announcement, San Francisco Republican Party Chairman John Dennis blamed progressive policies for running businesses out of town, telling FOX Business that San Francisco is "the worst managed city in America."
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But California Democratic Rep. Ro Khanna told FOX Business' "Cavuto: Coast to Coast" on Tuesday that despite crime problems, the claims of a "mass exodus" of businesses from San Francisco are not true, and the major tech hub is thriving.