Sewer smell, abandoned shops and huge lawsuits: The crash of Israel's "Movie City"

The Cinema City complex in Glilot was once a pioneer in its field: Israel's "Movie City", a symbol of leisure culture and a magnet that attracted visitors from all over the country - not just to watch a movie, but to spend time in the restaurants, shops, and the entertainment complex around it. However, in recent years, the commercial complex, owned by the Nitsba company, has been dealing with a significant decline in activity - to say the least, with the abandonment of many businesses and claims by tenants of neglect and poor maintenance. Alongside this, lawsuits totaling millions of shekels have been filed against the company in recent years by business owners who claimed that the state of the complex led to their economic crash.

We went to check whether, even at the peak of the summer vacation in August, the complex is still struggling to attract visitors. The surreal sight that appeared to the eye illustrates the inconceivable gap: while the nearby Big Fashion Glilot complex is packed with tens of thousands of visitors, on the other side of the crosswalk is a gloomy and quiet complex, where most of the shops are closed, and the corridors are almost empty of people.

Already on the way from the parking lot, it was hard to ignore the sharp smell of sewage, which some of the business owners at the place complained about a lot. At the entrance to the complex, the play area adjacent to the movie theaters, which at the peak of the summer vacation should, apparently, be bustling with children, was observed during the visit to be completely empty. According to Cinema City employees, visitors arrive in peaks and mainly in the afternoon and evening hours, when the movie theaters fill up. But in the commercial complex around it, as mentioned, the picture is completely different.

One of the business owners in the complex, who asked to remain anonymous, told "Ma'ariv": "Now it's still a good situation because we are in the summer vacation, this is the most in terms of people. If you want to see a real graveyard, come in the middle of the week." He emphasizes that one must distinguish between the Cinema City management and the management of the commercial complex, which is managed by Nitsba. "The place already looks like the old central bus station. There are no shops, everyone who rented here ran away," he claims. According to him, the events and conferences held at Cinema City are what help the businesses that remain in the place, because they bring visitors who also come to the shops "on the way".

Another business owner in the complex claims that the decline in activity also stems from the competition against Big Fashion Glilot which opened nearby. "Business owners don't want to come because of the expensive rent and also because of the Big. Many are afraid. They have no justification to open here because people spend all their money at the Big, and the few who trickle here won't necessarily spend more money." According to him, "The new shop that opened here pays 30 thousand shekels a month, from Landwer they asked at the time for more than 70 thousand shekels. Very few businesses remained here, so there is no competition, and thanks to that they manage."

On the other hand, at Nitsba they reject the picture presented by the business owners and claim that the complex continues to operate at high occupancy and serve thousands of visitors. According to the company, the occupancy rate stands at about 94%, and it includes about 13,962 sqm of active commercial space, alongside about 12 thousand additional sqm of offices and employment.

At Nitsba they note that the complex operates, among others, the offices of Neo-Linao, NMC and United King, as well as businesses and leisure centers including Golda, Cigars Club, World of Sweets, McDonald's, Neo-Linao cafe, a Mexican restaurant, Funky Town, Tayeset and the Cinema City movie theaters.

The lawsuits behind the crisis

As recalled, the legal saga around the Landwer chain began in February 2024, when Nitsba filed a lawsuit in the Tel Aviv District Court for 6 million NIS against the chain and the franchisees, claiming a continuous and fundamental breach of the lease agreement signed in 2017. According to Nitsba, the branch stopped paying the rent regularly and also the management fees in the amount of about 20 thousand shekels a month, did not meet the required operating hours and finally left the property unilaterally, while causing economic damages.

At Landwer they claimed in response that their departure stemmed from the state of the complex and from managerial and infrastructural neglect by Nitsba and the management company. According to them, floods, leaks and maintenance problems made the continued operation of the cafe impossible and drove away customers. At Nitsba they reject the claims and clarify that the dispute with Landwer deals mainly with alleged debts for rent, management fees and other charges, amounting, according to it, to about 6 million shekels.

According to the company, already in 2017, even before the outbreak of the coronavirus pandemic, Landwer presented economic difficulties in its activity in the complex. Nitsba then granted its request and gave it a 25% discount on the rent for 12 months. Later, Landwer asked to extend the benefit for another year, and to this Nitsba also responded, so that the discount period was extended until 2020.

According to Nitsba, with the end of the discount period, which was anchored in additions to the agreements between the parties, Landwer stopped paying the full payments that applied to it, while raising claims of damage to its activity following the coronavirus crisis. The company emphasizes that the claims regarding the quality of management and maintenance were not raised in real time, but only within the framework of the legal proceedings that were opened afterwards.

Later, other tenants in the complex also joined the dispute. At the beginning of 2025, chef Tzahi Bukshester, who operated the Black Burger Bar restaurant at the place for about 20 years, together with the owners of the Temple Bar pub, which operated in the complex until its closure in 2023, filed a lawsuit for 3.1 million shekels against Nitsba. The lawsuit claimed that the neglect of maintenance in the complex, which included, apparently, infrastructure malfunctions, sewage floods, leaks and pest hazards, led to a decrease in the number of visitors and to the economic collapse of Temple Bar. Shortly after the filing of the lawsuit, the Black Burger branch was also closed permanently.

Nitsba for its part filed a counterclaim for 5.2 million shekels, claiming debts for rent, management fees and breach of contract. In its current response, the company claims that the total amount of debts of the Irish pubs and the Black restaurant reaches about 16 million shekels.

According to Nitsba, in 2017, at the request of the Black operators, an addition was signed that extended the lease period of the restaurant until 2025. In 2018, the lease period of the Irish pubs in the complex was also extended until 2023. According to the company, the very renewal of the agreements for long periods shows that at that time the claims that are raised today in the legal proceedings were not raised by the tenants.

At Nitsba they claim that starting from the beginning of the coronavirus crisis, Black and the Irish pubs stopped paying the payments that applied to them, and later raised in retrospect various claims concerning the crisis and the management of the complex. The company adds that "in these circumstances it is not surprising that within the framework of the financial disputes, claims were also raised against it, but it denies them and will present its position before the competent courts."

Shufersal also joined the legal proceeding. On March 4, 2025, the chain filed a lawsuit for about half a million shekels, alongside a demand for a mandatory injunction that will require Nitsba to fix defects. According to Shufersal, the complex has suffered since 2010 from continuous neglect of the drainage and sealing systems. It was also claimed that severe dampness led to the collapse of part of the ceiling in the branch and even to physical injury to a customer.

Nitsba rejects these claims as well and claims that the dispute with Shufersal concerns debts in the amount of about 40 million shekels for rent and management fees that were not paid, according to it. The company notes that Shufersal operates the branch in the complex by virtue of a lease agreement signed in 2005 and extended from time to time, when the last extension period is supposed to end in December 2026.

According to Nitsba, Shufersal continues to operate its businesses in the place and even expressed a desire to continue and hold the leased property also in the future, and this in parallel to the fact that according to the company it does not pay the full rent and management fees that apply to it. Nitsba also claims that Shufersal makes use for its activity of areas that are not included in the leased area, and also causes damage to the leased property and the structure due to neglect and defects in the current maintenance of the interior of the branch, which is under its responsibility. Among other things, it was claimed that leaks originating from Shufersal facilities caused damage to areas located under the leased property.

At Nitsba they emphasize that the tenants' claims regarding the quality of management services were not raised in real time, but for the first time within the framework of legal proceedings whose main part, according to it, is significant financial debts accumulated due to non-payment of rent, management fees and other charges. According to the company, these are disputes in a total volume of tens of millions of shekels.

It was also reported that during the coronavirus crisis, Nitsba acted in cooperation with the tenants in the complex and reached agreements with them that included significant discounts, payment installments, commercial adjustments and other reliefs, with the aim of strengthening trade and enabling the continuation of business activity in the place. Nitsba reported that it denies the claims raised against it and that its full position will be detailed within the framework of the legal proceedings being conducted before the competent courts.

Also, at the Nitsba company they claim that in 2018 a comprehensive plan for renewal and upgrading was completed in the complex, which included renovation works to preserve the structure, improvement of public spaces and adaptation of the complex to the modern design and trade lines of that time in the amount of about 10 million shekels. It was also reported that as part of this policy, the company is currently promoting plans for further upgrading of the complex, and expects to carry out additional renovation works in the near future and thus continue to provide visitors and tenants with a high-quality and up-to-date urban trade and leisure environment.

Is the Big actually saving the complex?

Alongside the criticism, there are also business owners who present a more optimistic picture and claim that the opening of Big Fashion Glilot actually contributed to the activity in the place. For example, the franchisee of Golda ice cream in the complex said that in recent months an increase in activity is felt, mainly thanks to "trickling of visitors" from the nearby complex, and that the month of July was a month with high revenues.

Another business owner points to a wider change that the leisure world in Israel is undergoing. According to him, since the coronavirus, there has been a change in consumption habits, when the strengthening of streaming services like Netflix hurt cinema viewing habits, and the influence is also felt on the businesses around it. According to him, the state does not do enough to help small businesses, and in a reality where giant complexes based on international chains manage to attract the crowd, old and nostalgic leisure complexes struggle to survive.

At the Nitsba company they reported and added that "Nitsba continues to act in accordance with its long-standing policy for the enhancement of its assets, for constant renewal and for the development of the commercial, leisure and business complexes owned by it. This policy is implemented in the Cinema City Glilot complex, as well as in other complexes of the group including the Airport City business park and the Kesem complex for trade and business in Rosh HaAyin out of an advanced and innovative long-term vision. As part of the company's trust in the growth potential of the Cinema City Glilot complex and its vision for continued development, the management of the Airport City – Nitsba group is going to move its offices to the complex. A move that expresses the company's commitment to continued investment, renewal and development of the complex, and its assessment that in the coming years the complex will continue to develop, grow and be a leading leisure, trade and employment center for the benefit of its tenants, visitors and the general public."