With the retail sector continuing to see serious strain from growing operational costs and the rise of e-commerce, both shopping complex operators and brands that were once considered untouchable mall staples have all had to file for bankruptcy over the last year.
Between the two of them, jewelry and accessories retailer Claire’s and fast-fashion brand Forever 21 liquidated hundreds of stores after filing for Chapter 11 bankruptcy for the second time in 2025.
Prom dress retailer Francesca’s and fashion giant Saks have filed for bankruptcy in 2026; while the latter secured over $100 billion in new funds to undergo a restructuring, the wider trend of operators struggling to justify the cost of expensive retail space continues.
Blackhawk Plaza files for Chapter 11 protection in California court
A Bay Area mall located 45 minutes southwest from San Francisco, Blackhawk Plaza in Danville filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California earlier in March.
The Ramanujan Group LLC investment firm behind the outdoor shopping mall in the wealthy San Ramon Valley neighborhood purchased it at the height of the Covid pandemic in 2020 for $28.3 million and quickly racked up debts to various vendors, property operators, and bank creditors.
Related: 26-year-old sushi chain files for Chapter 11 bankruptcy
The largest debts include $207,552.80 owed to Orange County property management company Vierergruppe Management Inc. and $112,502.06 owed to gas and electricity provider PG&E.
Although the Blackhawk Plaza previously housed a number of high-end stores and restaurants, locals increasingly described it as a “ghost town” after many began closing without replacements, and the space around a large garden fell into increasing disrepair, a RetailWatchers post indicated.
Blackhawk Plaza
Ramanujan Group allowed “slow decay of the plaza,” tenant lawsuit alleges
Amid several defaulted loans and lawsuits alleging concealment of its true financial state, Ramanujan Group was also recently hit by a lawsuit, SiliconValley.com reported. A group of tenants claimed the company “ignored maintenance and repair obligations, thus allowing the slow decay of the Plaza.”
After the investment company filed for Chapter 11 protection, several tenants claimed that they only found out about the bankruptcy through posts on Facebook and other social media platforms, per SFGate.
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“No one gave us any notification,” Jung Dong Choi, who operates the Blue Sakana sushi restaurant, described to SF Gate. “It makes me very angry. They’re running around trying to hide things and not telling the full story of how things are going.”
“Despite our efforts, the landlord has been unresponsive, and we do not anticipate improvements that would allow us to operate successfully,” the owners of Draeger’s Run, a high-end grocery store and deli that operated at the plaza for 18 years but shut down in January, also said of the situation.
Filing for bankruptcy protection allows Ramanujan Group to retain ownership as it works out a restructuring plan. Above all, it buys the company time after lender NanoBanc filed a separate lawsuit seeking to put the plaza under receivership and liquidate its assets over unpaid debts.
The deadline for Ramanujan Group to file a restructuring plan has been set at June 16.
Related: Tour company goes into liquidation and cancels all trips
