Harried Hollywood retailers hit yet again - by sinking sidewalks.

Hollywood business people -- already struggling with a decaying community and physical damage from a riot and an earthquake -- now face a severe loss of business due to the sinking and cracking of sections of Hollywood Boulevard.

Business owners and economic experts say even though the street was reopened the afternoon of Aug. 22, after having a section closed for three days because of damage brought on by Metro Rail subway construction, a nationwide public perception persists that the area is a disaster. And that is keeping away tourists and shoppers.

Some Hollywood Boulevard retailers say they have lost out on thousands of dollars in sales and may have trouble paying bills this month.

"If there are no customers, there is no money. How am I going to pay my rent?" said Ahmad Khawaja, manager of Jean Machine clothing store.

Greg Avakian, manager of Tony Shoes, said he lost up to $1,500 per day in shoe sales while the street in front of his business was closed.

Across the street, Payman Shaffa, manager of Hollywood Toys & Costumes Inc., said he lost an estimated $7,000 worth of business during that weekend.

Retailers said the loss of business could hurt their ability to pay bills. Khawaja of Jean Machine, for instance, said he has already asked his landlord if he can pay his rent late this month.

Furthermore, the street's reopening was not widely publicized, so many shoppers still thought Hollywood Boulevard was closed at mid-week last week and weren't coming to the stores, retailers said.

"Since we opened this morning, the cash register says zero," Khawaja said at about 11 am. on Tuesday, Aug. 23, the day after the street reopened.

Even on Wednesday, Aug. 24, Shaffa said "our business today is zilch."

Shaffa, Khawaja, Avakian and other retailers said they plan to file claims with the Metropolitan Transportation Authority to recoup their lost revenue. But at an MTA board meeting last week, some board members and staff indicated they were not yet willing to accept full blame for the disaster.

Leron Gubler, executive director of the Hollywood Chamber of Commerce, called on the MTA to order an independent study of the problem and to complete its analysis of how to avoid future destruction before proceeding with tunneling farther west on the boulevard, toward Hollywood's "most historic structures."

"This is the peak of the tourist season, and it is already affected," he said. "A lot of tourists assume there's no Walk of Fame anymore. This is an international cultural resource."

Jack Kyser, chief economist at the Economic Development Corp. of L.A. County, said although this has been a good summer for the local tourism industry, Hollywood is suffering with "a pretty fragile business environment to begin with."

"Any disruption is bound to be very, very painful," said Kyser. "A lot of people think the whole boulevard is shut down. This is one more blow to the (business owners') fingers they've got on the ledge."

Indeed, further down Hollywood Boulevard at Shelly's Cafe -- a restaurant that has remained open near the Radisson Hollywood Roosevelt Hotel, business has been off about 40 percent, said owner Shelly Shao. The cafe caters to tour groups.

"It's still slow. This morning, there's no people," Shao said on Wednesday, Aug. 24. "I guess people are still worried and think it's not safe."

Hollywood normally is the most visited place in Los Angeles, with 43 percent of tourists stopping there, said George Kirkland, president of the Los Angeles Convention & Visitors Bureau. However, Hollywood ranks low in customer satisfaction.

"The press regarding Hollywood will obviously (negatively) impact the public perception of Hollywood and the number of people going there," said Kirkland.