Saks Global keeps two key stores open after legal settlement

Saks Global has settled its legal dispute with Simon Property Group, which had threatened to result in the closure of two of its stores against its will.

The two stores — in the Stanford Shopping Center, California, and in an outlet mall in Woodbury, New York, respectively — are part of shopping malls owned by Simon Property Group.

Simon Property Group had claimed back in February that Saks Global reneged on rent payments, as well as other costs, shortly before it filed for Chapter 11 bankruptcy protection in January.

Saks’ defence was that the Chapter 11 agreement gives it time to pay back any outstanding rent or other costs that it allegedly owes, without Simon Property Group disrupting its normal business practices.

Now, a US bankruptcy court has approved Saks Global’s settlement with Simon Property Group and preserved the retailer’s relationship with its largest landlord.

The settlement allows Saks Global to keep the stores running, albeit with the caveat of restructured lease terms, revised durations, and certain capital expenditure contributions.