Simon Property Moved to Terminate Two Saks Global Leases Just Before Bankruptcy

As Saks Global barreled toward bankruptcy tribunal this month, its longtime landlord Simon Property Group moved to reclaim a mates of its stores.

In a petition filed to the Houston national bankruptcy justice overseeing the case, Simon’s attorney, Jeri Leigh Miller of Sidley Austin, said the landlord terminated its lease with the company’s Neiman Marcus part successful the Stanford Shopping Center arsenic good arsenic different lease Saks held astatine the Woodbury Common Premium Outlets.

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Miller asked the tribunal to corroborate that the leases person been terminated and that the automatic enactment that went into spot erstwhile the institution filed for bankruptcy does not “prevent Simon from obtaining possession of the premises.”

Simon notified Saks Global connected Jan. 7 that the retailer had failed to wage $7 cardinal successful rent and different changes connected the 2 leases and past hand-delivered termination notices the pursuing time — little than a week earlier the retailer filed for Chapter 11 connected Jan. 14.

“Under the unambiguous and wide presumption of the missive agreement, the leases terminated effectual connected Jan. 8, 2026, and the debtors were required to vacate the leased premises nary aboriginal than Jan. 18, 2026,” Miller argued for Simon.

According to the filing, Saks Global disputed the move, maintaining that immoderate of the wealth owed had been paid and that a grace oregon cure play rendered the notices ineffective.

Miller, however, said determination was nary “right to cure” that applied to the leases.

If the tribunal rules that the bankruptcy enactment does use to the leases and Simon is not capable to reclaim the properties close away, Miller argued his lawsuit should beryllium capable to “pursue authorities instrumentality remedies.”

“Today, the debtors person nary ineligible close to stay successful the leased premises,” Miller said. “Even if the debtors stay arsenic holdover tenants, specified tenancy cannot past beyond the decision of these Chapter 11 cases.”

Simon has leased spot to Saks since astatine slightest the aboriginal 1970s and developed a person narration with the retailer erstwhile it moved to bargain rival Neiman Marcus Group for a full of $2.7 cardinal conscionable implicit a twelvemonth ago.

The existent property elephantine enactment $100 cardinal into the woody successful speech for Saks Global “preferred equity.” Amazon went adjacent deeper, committing $475 cardinal to the acquisition.

Now, with adjacent the unsecured creditors successful the lawsuit projected to get pennies connected the dollar for what they’re owned, the equity is expected to beryllium wiped out.