This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. A group of mall landlords on Tuesday asked the U.S. Bankruptcy Court for the Southern District of Texas to modify a financing agreement to ensure that Saks Global makes good on what they say is unpaid rent. Aventura Fashion Island, Brixmor Park Shore and GGP Retail (formerly Brookfield) are among the mall landlords demanding “the immediate payment of rent” for the ...

Group 1 - Saks Global has entered a 50-50 joint venture with Authentic Brands Group, which collects royalties from sales of various luxury brands, excluding U.S. and Canadian stores and global e-commerce [3][4] - In the event of bankruptcy, Authentic's preferred equity in Saks will be exchangeable for a 77% stake in the joint venture [4] - The joint venture involved transferring intellectual property related to Saks and other brands to subsidiaries that are not guarantors on the debtors' funded debt [5] Group 2 - Saks Global's agreement with Amazon requires the company to pay referral fees and potentially true-up payments totaling up to $900 million over eight years, which may need to be renegotiated due to the company's financial struggles [6] - The company reported a $550 million inventory shortfall, complicating its plans to rejuvenate the business and pay vendors [7] - Despite raising $600 million in new funding, Saks Global could only allocate $244 million for vendor payments, as the rest was needed for working capital amid significant EBITDA losses [8]

Core Insights - Saks Global is expected to file for bankruptcy by early-to-mid next week, with a reorganization plan that includes numerous store closures across its portfolio [1] - At least 20 Saks Fifth Avenue and Neiman Marcus locations have been identified for closure, with a total of 33 Saks Fifth Avenue stores and 36 Neiman Marcus stores in operation [2] - The company is in discussions with key financial stakeholders and exploring all potential options, with no final decisions made yet [3] Store Closures - The reorganization plan will likely lead to the closure of underperforming stores, particularly in locations such as St. Louis, Las Vegas, and several cities in Texas and Florida [4] - Saks Fifth Avenue's stronger locations include Houston, Naples, and Beverly Hills, while Neiman Marcus's top stores are in Dallas, Beverly Hills, and San Francisco [5][6] Financial Strategy - If a Chapter 11 reorganization is approved, flagship locations like Bergdorf Goodman and Saks Fifth Avenue in Manhattan are expected to survive [4] - The company has previously indicated plans to close up to 10 Saks Fifth Avenue stores following its merger with Neiman Marcus in December 2024 [3]

Legal Dispute Overview - The legal battle between former Bergdorf Goodman chief merchant Yumi Shin and Saks Global is ongoing, with Shin seeking to dismiss the case against her, claiming that a federal court trial in Texas violates her rights [1][3] - Saks Global is attempting to have information regarding its acquisition of the Neiman Marcus Group redacted from Shin's court filings, citing confidentiality concerns [2][4] Allegations and Legal Actions - Saks Global's lawsuit, filed in November, accuses Shin of violating her non-compete agreement and stealing proprietary information, although the specifics of the alleged stolen information remain unclear [3] - Shin served as the chief merchandising officer at Bergdorf Goodman from January 2019 until her departure in October 2025, with plans to join Nordstrom [3] Financial Aspects and Merger Details - Saks Global announced the acquisition of the Neiman Marcus Group for $2.7 billion in December 2024, and is seeking to protect sensitive information related to the merger in the ongoing legal proceedings [4][5] - The company is also pursuing damages, attorneys' fees, and costs associated with the trial [5] Impact on Employment - The legal dispute is delaying Shin's potential employment with Nordstrom, which had hoped for her swift transition to the company [6] - Typically, in cases involving non-compete agreements, parties may reach a financial settlement to expedite the individual's employment, although Nordstrom has not commented on this situation [6]