Simon Property Group Settles Lease Dispute with Saks Global, Dropping Eviction Efforts
Simon Property Group and Saks Global have resolved a significant legal dispute regarding unpaid rent and lease terminations, removing a major obstacle to Saks Global’s planned exit from Chapter 11 bankruptcy next month. The agreement allows Saks Global to retain two key locations that Simon had previously sought to evict: a Saks Off 5th store at Woodbury Common Premium Outlets in New York and a Neiman Marcus store at Stanford Shopping Center in California. Under the terms, which await approval from the U.S. Bankruptcy Court for the Southern District of Texas, Saks Global will receive rent breaks and improved lease conditions for several properties. In exchange, the retailer agrees to shorter lease terms at certain locations, provides protections for Simon in future bankruptcy scenarios, and will pay accrued charges along with Simon’s legal fees. This settlement avoids prolonged litigation and preserves the business relationship between the luxury conglomerate and its largest landlord. The resolution supports Saks Global’s strategy to emerge from bankruptcy with $1.2 billion in debt and $700 million in liquidity, ensuring the continued operation of lucrative stores while addressing outstanding financial obligations.
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Simon Property Group Settles Lease Dispute with Saks Global, Dropping Eviction Efforts
Simon Property Group and Saks Global have resolved a significant legal dispute regarding unpaid rent and lease terminations, removing a major obstacle to Saks Global’s planned exit from Chapter 11 bankruptcy next month. The agreement allows Saks Global to retain two key locations that Simon had previously sought to evict: a Saks Off 5th store at Woodbury Common Premium Outlets in New York and a Neiman Marcus store at Stanford Shopping Center in California. Under the terms, which await approval from the U.S. Bankruptcy Court for the Southern District of Texas, Saks Global will receive rent breaks and improved lease conditions for several properties. In exchange, the retailer agrees to shorter lease terms at certain locations, provides protections for Simon in future bankruptcy scenarios, and will pay accrued charges along with Simon’s legal fees. This settlement avoids prolonged litigation and preserves the business relationship between the luxury conglomerate and its largest landlord. The resolution supports Saks Global’s strategy to emerge from bankruptcy with $1.2 billion in debt and $700 million in liquidity, ensuring the continued operation of lucrative stores while addressing outstanding financial obligations.
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