Saks Global faces more rent disputes amid bankruptcy

Core Viewpoint - A group of mall landlords is seeking modifications to a financing agreement in U.S. Bankruptcy Court to ensure that Saks Global pays approximately $19 million in unpaid rent following its bankruptcy filing on January 13, 2023 [1][2]. Group 1: Landlords' Claims - Mall landlords, including Aventura Fashion Island, Brixmor Park Shore, and GGP Retail, are demanding immediate payment of rent for the period from January 13 to January 31, 2023, totaling up to $19 million in unpaid lease obligations [2]. - Saks Global continues to occupy the leased spaces and intends to use them for its benefit, either by operating post-bankruptcy or conducting going-out-of-business sales [3]. Group 2: Legal Proceedings - Saks Global has not yet responded to the landlords' claims in court and filed an objection to Simon Property Group's request to terminate two leases due to over $7 million in unpaid rent [4]. - The Chief Restructuring Officer of Saks Global stated that vacating the stores would cause significant harm to the company and its bankruptcy process [5]. Group 3: Strategic Moves - Simon Property Group made a $100 million investment to assist Saks Global in acquiring Neiman Marcus Group, which included concessions such as the right to terminate two leases [6]. - Saks Global is planning to close most of its off-price stores, retaining only a dozen Saks Off 5th locations, including one at Woodbury Common Premium Outlets, which is among the leases that Simon Property Group has terminated [7].