A group of mall landlords on Tuesday asked the U.S. Bankruptcy Court for the Southern District of Texas to modify a financing agreement to ensure that Saks Global makes good on what they say is unpaid rent.
Aventura Fashion Island, Brixmor Park Shore and GGP Retail (formerly Brookfield) are among the mall landlords demanding “the immediate payment of rent” for the weeks following the company’s Jan. 13 bankruptcy filing. The landlords say there is up to $19 million in unpaid lease obligations from Jan. 13 through Jan. 31.
Saks Global’s stores continue to occupy the spaces and its “filings to date make clear that they plan to continue using and occupying the Leased Premises for the benefit of their estates,” either because they plan to continue operating post-bankruptcy or to conduct going-out-of-business sales at some point, per the filing.
The luxury conglomerate didn’t immediately respond to a request for comment and hasn’t yet answered the landlords’ claims in court. The company on Monday did file an objection to Simon Property Group’s request last month for the court to recognize its termination of two Saks Global leases, over more than $7 million in unpaid rent.
Being forced to vacate those stores “would cause significant harm” to Saks Global and its bankruptcy process, Saks Global Chief Restructuring Officer Mark Weinsten said in court documents.
In exchange for a $100 million investment to help Saks Global acquire Neiman Marcus Group in late 2024, Simon Property Group obtained certain concessions, including the right to terminate two leases, CEO David Simon told analysts earlier this month. Simon Property Group didn’t immediately respond to a request for clarification about the dispute with Saks Global.
Saks Global is closing most of its off-price stores, with plans to keep just a dozen Saks Off 5th locations operating. That includes the Saks Off 5th store at Woodbury Common Premium Outlets, one of the leases that Simon said has been terminated.
