Simon and Saks Global strike deal to preserve luxury stores amid bankruptcy
Simon Property Group and Saks Global have struck a deal to retain several high-end retail stores in key locations. The agreement comes as Saks Global works through Chapter 11 bankruptcy, aiming to exit the process by June 2026. Both companies have also reported strong financial results for early 2026, signalling stability amid restructuring efforts. Saks Global announced plans to keep 15 Saks Fifth Avenue stores and 33 Neiman Marcus outlets operational. Additionally, an agreement with Simon ensures that certain Saks Off 5th and Neiman Marcus stores will remain in select Simon-owned properties. The retailer expects to complete its Chapter 11 proceedings in June 2026, emerging with $700 million in available cash and $1.2 billion in remaining debt.
Simon, meanwhile, reported robust first-quarter figures for 2026. Net income for Q1 reached $479.6 million, or $1.48 per diluted share. The company’s real estate funds from operations (FFO) hit $1.21 billion, equivalent to $3.17 per diluted share, while overall FFO totalled $1.11 billion, or $2.91 per diluted share. Occupancy across its U.S. malls and Premium Outlet centres stood at 96% as of March 31, 2026. Looking ahead, Simon raised its 2026 outlook for real estate FFO to between $13.10 and $13.25 per diluted share. The company also projected net income for the year to range from $6.61 to $6.76 per diluted share. A quarterly dividend of $2.25 per common stock share was declared for Q2 2026.
The deal between Simon and Saks Global secures the future of several luxury retail locations. Saks Global’s restructuring is on track for completion in mid-2026, while Simon’s strong occupancy rates and financial performance highlight its resilience. Both companies appear positioned for stability as they move forward.
