I don't have a dog in this hunt, I don't shop there, and if my dead body is found there, you can be assured that said dead body was moved.
Unless, or until, you can prove that management has orchestrated or benefitted from the illegalities, the business is legitimate.
Could they stop the shenanigans? No doubt. Close the semi-private screening rooms. That will force the police department to stay on the streets and the pervs have to make their own arrangements, elsewhere.
Hey, littletommy, I need some hand/mind sanitizer. Any spares? ICK, YUCK, and BLECH!