Cinema City Galilot Faces Decline Amid Legal Battles and Competition from Big Fashion Mall
Cinema City Galilot, once known as Israel's movie capital, is experiencing a significant decline as its commercial complex empties and shops close, contrasting sharply with the nearby bustling Big Fashion Galilot mall. Despite the cinema halls filling up mainly in the afternoons and evenings, the surrounding retail area remains largely deserted, with many business owners citing high rents and competition from Big Fashion as key reasons for their departure. One anonymous shop owner described the complex as a "real cemetery," especially during weekdays, highlighting the stark difference from the lively adjacent mall.
The complex is managed by Natzba, which disputes the negative portrayal, claiming a 94% occupancy rate across nearly 14,000 square meters of retail space and an additional 12,000 square meters of office and employment areas. Natzba lists several active businesses and entertainment venues within the complex, including Neo-Linao offices, NMC, United King, Golda ice cream, McDonald's, and the cinema itself.
Underlying the crisis are ongoing legal disputes between Natzba and major tenants such as Landwer and Shufersal. Natzba filed a 6 million shekel lawsuit against Landwer in 2024, accusing it of breaching its lease agreement by failing to pay rent and management fees, not adhering to operating hours, and unilaterally vacating the premises. Landwer counters that the complex suffered from neglect, poor maintenance, flooding, and infrastructure issues, which forced their exit. Natzba denies these claims and has filed a counterclaim for 5.2 million shekels.
Shufersal also sued Natzba in March 2025 for about half a million shekels, demanding repairs after severe water damage caused ceiling collapse and injury to a customer. Natzba rejects these allegations, asserting Shufersal owes around 40 million shekels in unpaid rent and fees and has caused damage by neglecting maintenance.
Natzba emphasizes that complaints about management quality surfaced only during legal proceedings, not during the tenancy. The company also notes it invested approximately 10 million shekels in 2018 to renovate and modernize the complex and plans further upgrades soon. Some business owners see a silver lining, reporting increased activity due to visitor spillover from Big Fashion and changes in consumer habits post-COVID, including the rise of streaming services impacting cinema attendance.
Natzba plans to relocate its offices to Cinema City Galilot, signaling confidence in the site's future growth as a commercial, entertainment, and employment hub despite current challenges.
