Posted on 01/30/2024 9:33:06 PM PST by Morgana
An iconic San Francisco toy store famed for inspiring the Toy Story movies has been forced to close after 86 years due to the city's rampant crime and homelessness epidemic.
Jeffrey's Toys shared the news this week that it would be permanently closing its doors, citing a crimewave that had left it 'struggling for a number of years'.
The store's attorney named the 'perils and violence of the downtown environment' as the main factor driving the decision, alongside 'inflation, the decrease in consumer spending and the demise of retail across the world'.
'The leadership of the City of San Francisco and the Downtown Association have their work cut out for them on how to revitalize what was once a vibrant and fun downtown experience,' said attorney Ken Sterling, representing the owners.
The store has joined a staggering number of once-profitable retailers to abandon the crime-ridden city, with major stores including Nordstrom, Whole Foods and CVS already closing all their locations in the area.
The family-owned company first opened its doors in 1938 and once had seven locations across the city, but now said it was 'saddened' its run had come to an end due to flatlining footfall in the downtown area. The closure was first reported by San Francisco Business Times.
Co-owner Matthew Luhn, who runs the store with his dad and stepmother, told SFGate weeks before closure that they were desperate to stay in business, 'but we need a healthier relationship with the city.'
'We're putting our money in, we're putting our hard work in, and we're putting our love into it. But, in the relationship we have with the city, that's not being returned.'
(Excerpt) Read more at dailymail.co.uk ...
bttt
*last Friday
They probably had a very long term lease, taken out many years ago, that was so far under market, it was likely the majority of their store profit. [there are thousands of businesses out there in that situation: They would not be profitable businesses if they had to pay contemporary lease rates.] If you go look at pix of the store, it is not a Saks Fifth Avenue deal, it’s more like a mom & pop store.
And this article https://abc7news.com/jeffreys-toy-store-mom-and-pop-business/573148/ says the landlord wanted a 500% rent increase.
Any comment from Pelosi?
Guess not.
Keep voting Democrat California.
not “so far under market” anymore is it?
Outside the Nancy Pelosi Federal Building, drug dealers set up shop in full view of the public on a daily basis, with users injecting and smoking with no interference from law enforcement.This is from further down in the same article.
The crisis outside the federal building — which cost taxpayers $144 million to build — led officials to issue a stay-at-home order to employees last summer to avoid the seedy individuals loitering outside. …
Well the rental on a commercial property can be very significant in terms of the value of the property. In fact, it’s pivotal. This is why you see many commercial properties, especially in New York, where the landlord will allow the place to be empty, sometimes for years, waiting for some tenant to pay the insane ticket.
If you are saying that due to homelessness and sidewalk poop and weirdos in the neighborhood, that nobody in their right mind would pay what they once did for rent, that’s probably true.
But the owner of the building might very well want to jack the rent sky high in order to refi the building and then abandon it.
Yeah, there’s no question that an empty store generates nothing, but if some bank will lend the owner a ton of money based upon the jacked up rent, even if there is no actual tenant paying it, that is by no means a rare ploy. And likewise, if the owner reduces the rent by a load, the building devalues concurrently and may induce the current lender to call the loan or demand additional cash (or other real estate) collateral!
These stores should all move to Red States - in safe suburban locations. They would do very well.
Bookmark
‘k, blah, blah, blah, bs, bs, bs ...
injecting that element into the story of which the SUCK of downtown S.F. is the point.
now you’re going to bs about how toy store could never make it, right?
I’m 52 years old and have some advice for young Freepers in their 20’s & 30’s that want to make money & grow families.
Young man,
Turn your gaze from the city to the country, that is where your fortune & family will grow & prosper over the next two decade.
Tough times are coming.......Seize your opportunity like your ancestors did.
San Francisco is Gov. Greaseball’s home base. He cut his teeth turning the City by the Bay into a sewer, and now he is doing the same to the entire state. Lock step Marxist that he is, Greaseball wants to bring his evil and destruction to the entire nation as the ‘RAT candidate for president in 2024 or 2028.
By moving to another state they would be investing their personal capital and competing for business in whats likely to be an already saturated market. And its likely the owners just want to get out of the hassle. Their business as a going concern is probably worth 0.
They are at the corner of Kearny and Maiden Lane. Back in the day (just four years ago) Maiden Lane was a high-toned location for expensive ladies boutiques, etc. This is just off Union Square, home to Macy’s, Saks, Nieman Marcus, etc. Its where rich women shopped.
I passed by there, entered Jeffries, walked through Maiden Lane, etc, last May. Mostly empty storefronts.
All gone, or going soon. Saks is closing this year I think. From what I’ve seen there Macy’s too is not long for this world. No foot traffic and little merchandise.
For a going concern with strong business, a rent increase should not be a big deal.
The problem is that when you have your business has been killed you can’t afford the rent at any costs.
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