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

Core Viewpoint - Saks Global is approaching bankruptcy, leading its landlord, Simon Property Group, to reclaim certain stores due to unpaid rent and lease terminations [1][2]. Group 1: Lease Termination and Bankruptcy Proceedings - Simon Property Group has filed a request to confirm the termination of leases for Saks Global's stores in Stanford Shopping Center and Woodbury Common Premium Outlets [1][2]. - Saks Global failed to pay $7 million in rent and other charges, prompting Simon to terminate the leases on January 8, 2026, just days before Saks filed for Chapter 11 on January 14 [2][3]. - Saks disputes the lease termination, claiming some payments were made and that a grace period should render the termination notices ineffective [3]. Group 2: Legal Arguments and Implications - Simon's attorney argues that there is no "right to cure" applicable to the leases, and if the court rules in favor of the bankruptcy stay, Simon should pursue state law remedies [4]. - Simon asserts that Saks Global has no legal right to remain in the leased premises, and any holdover tenancy cannot extend beyond the conclusion of the Chapter 11 cases [4]. Group 3: Financial Context and Stakeholder Impact - Simon Property Group has a long-standing relationship with Saks, having leased property to them since the early 1970s, and recently invested $100 million in Saks Global's preferred equity [4]. - The acquisition of Neiman Marcus Group for $2.7 billion has further intertwined the interests of Simon and Saks, while unsecured creditors are expected to receive minimal recovery [5]. - Amazon has also invested significantly, committing $475 million to the acquisition, but the equity is projected to be wiped out due to the bankruptcy proceedings [5].