A coalition of shopping center landlords is pressing Saks Global in bankruptcy court, Retail Dive has reported.
The coalition claims the luxury retailer has allowed as much as $19 million in rent to go unpaid in the weeks immediately following its Chapter 11 filing.
On Tuesday, several property owners, including Aventura Fashion Island, Brixmor Park Shore and GGP Retail (formerly Brookfield), petitioned the U.S. Bankruptcy Court for the Southern District of Texas to amend the company’s debtor-in-possession financing arrangement.
Their objective is to ensure Saks Global satisfies what they describe as outstanding lease obligations incurred between Jan. 13, when the company filed for Chapter 11 protection, and Jan. 31.
According to the landlords’ filing, Saks Global continues to operate in the leased spaces and has indicated through court submissions that it intends to keep using the properties, either to maintain ongoing operations or to stage future liquidation events.
The landlords argue that continued occupancy without timely payment undermines their contractual rights and shifts financial risk onto property owners during the restructuring process.
Saks Global has not yet formally responded in court to the landlords’ latest motion and did not immediately provide public comment.
The dispute adds to an already contentious exchange with Simon Property Group, one of the retailer’s largest landlords.
Last month, Simon sought court recognition of its termination of two Saks Global leases, citing more than $7 million in unpaid rent. Earlier this week, Saks Global filed an objection to that request.
In court documents, Chief Restructuring Officer Mark Weinstein argued that being compelled to vacate the affected stores would materially disrupt the company’s reorganization efforts.
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Forcing closures at this stage, he contended, could jeopardize value preservation and undermine the broader bankruptcy process.
The relationship between the two companies is further complicated by a prior investment arrangement. In late 2024, Simon committed $100 million to support Saks Global’s acquisition of Neiman Marcus Group.
In exchange, Simon secured certain contractual concessions, including the right to terminate two leases under specified conditions, CEO David Simon told analysts earlier this month.
Meanwhile, Saks Global is proceeding with a significant downsizing of its off-price footprint. The company plans to shutter most Saks Off 5th locations, retaining only about a dozen stores.
Among those it intends to keep open is the Saks Off 5th at Woodbury Common Premium Outlets — one of the leases Simon asserts has already been terminated.
As the Chapter 11 case advances, the court will need to weigh landlords’ demands for immediate rent payments against Saks Global’s restructuring strategy and liquidity constraints.
The outcome could shape how aggressively property owners pursue post-petition rent claims in large-scale retail bankruptcies going forward.
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