DANVILLE — Draeger’s Market will shut its store in Danville within weeks, a closure that the local chain blames on the state of Blackhawk Plaza, where the grocery hub is located.
“The biggest reason for our decision to close is the decline of Blackhawk Plaza,” Richard Draeger, a co-owner of Draeger’s Market, said in an interview with this news organization. “It’s mostly empty. My best guess is that it’s 70% to 80% vacant.”
The deterioration of the upscale mall has led to an erosion in sales for the Draeger’s Market at 4100 Blackhawk Plaza Circle, according to Draeger.
“This has caused a severe decline in traffic and sales,” Draeger said. “It’s the result of the problems with the center.”
Draeger’s is attempting to find jobs at the company’s Peninsula locations for the approximately 48 people who work at the Danville store, according to Draeger. The retailer also operates stores in Los Altos and Menlo Park.
In recent years, Blackhawk Bar & Grille and Century Theaters ceased operations at Blackhawk Plaza, which removed significant anchors from the center. The Draeger’s exit will add to those problems.
In 2023, real estate agents announced that Apple Cinemas had agreed to lease the space that the Century movie complex had vacated. But more than two years later, the movie house site remains empty.
Ramanujan Group owns Blackhawk Plaza after paying $38.2 million in 2020 for the complex. The ownership group, based in the Orange County city of Newport Beach, also obtained $28 million in financing from Preferred Bank at the time of the deal.
“The maintenance of the center is pretty poor,” Draeger said. “The current ownership has fallen far behind in maintenance.”
Ramanujan Group, through one of its principal officials, Deba Shyam, denied an array of allegations about poor maintenance at the center, according to a 2024 filing in Contra Costa County Superior Court.
Draeger pointed to the central water feature that runs through much of the length of Blackhawk Plaza. Once filled with fish and water birds, the waterway is now choked by algae and mud, according to Draeger.
“People used to bring their kids to feed the ducks,” Draeger said. “Now it’s an eyesore.”
The Danville store has been open for about 18 years, according to Draeger. The Menlo Park store opened in 1955, while the Los Altos store has been open since 1986.
“We are doing a very strong business at both of the Peninsula stores,” Draeger said. “Both Los Altos and Menlo Park are doing fantastic.”
The timing of the shutdown of the Danville store is a bit in flux, according to Draeger, although the closure is anticipated for sometime in February.
“It looks like we will close Danville in three or four weeks,” he said. “We are conducting a closing sale right now. It just depends on how long it takes to sell down the inventory. We had a very busy weekend.”
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