Saks Global Battles Simon Property Group to Retain Two High Value Retail Leases in 2026

Saks Global fights Simon Property Group to retain valuable leases in Palo Alto and Woodbury. Discover the strategic impact on creditors and the retail market.

By: AXL Media

Published: Feb 20, 2026, 7:51 AM EST

Source: Information for this report was sourced from Bisnow

The High Stakes Leasehold Dispute

Saks Global Enterprises has entered a legal confrontation with the prominent landlord Simon Property Group over the fate of two significant retail locations. The dispute centers on a luxury Saks Fifth Avenue store located at the Stanford Shopping Center in Palo Alto, California, and a Saks Off Fifth outlet in Woodbury, New York. While Simon Property Group is moving to terminate these agreements, Saks Global is fighting to keep the operations active. This move is not merely about retail presence but is a calculated effort to preserve the value of the leases themselves.

The Regulatory and Restructuring Landscape

From a regulatory perspective, the battle highlights the complex nature of commercial leasehold rights during corporate restructuring. Saks Global argues that the summary termination of these leases would strip the company of the opportunity to liquidate these assets for the benefit of its creditors. In the realm of commercial real estate law, leases in top tier malls like the Stanford Shopping Center are considered extremely valuable intangible assets. Landlords often seek to reclaim such spaces to re-lease them at contemporary market rates, while distressed tenants view them as vital lifelines for raising liquidity through a sale to third parties.

Strategic Rationale and Asset Liquidation Goals

The strategic positioning of Saks Global in this instance mirrors broader trends seen in the evolution of the department store sector. By fighting to hold onto these specific locations, the company is attempting to maximize its recovery value. The Palo Alto and Woodbury markets represent some of the most lucrative retail real estate in the United States. Successfully selling these leases would provide a significant cash infusion that could satisfy a portion of the company’s outstanding debts. This strategy demonstrates that in the modern economy, the physical footprint of a retailer can often be worth more than the brand’s inventory or operational revenue.