Amazon Calls $475M Stake 'Worthless' in Amazon Saks Global Bankruptcy Objection
Amazon has filed a formal Amazon Saks Global bankruptcy objection, claiming its $475M investment is worthless after Saks filed for Chapter 11 protection.
A massive luxury retail bet has turned into a nightmare for the world's largest e-commerce giant. Amazon is fighting back against Saks Global's bankruptcy financing plan, labeling its $475 million investment as effectively "worthless."
The Core of the Amazon Saks Global Bankruptcy Objection
Attorneys for Amazon filed a motion in federal court on Wednesday, alleging that the luxury retailer "burned through hundreds of millions of dollars" in less than a year. Since acquiring Neiman Marcus for $2.7 billion in December 2024, Saks has reportedly failed to meet budget targets and ran up massive unpaid invoices to retail partners, violating the spirit of its strategic partnership with the tech titan.
Luxury Strategy at a Crossroads
The deal was originally a linchpin for Amazon's high-end fashion ambitions. It guaranteed a Saks storefront on its platform and at least $900 million in referral fees over 8 years. Now, with Saks filing for Chapter 11, that synergy is under fire. While Judge Alfredo Perez allowed Saks to begin tapping into $1.75 billion in new financing to avoid immediate liquidation, the tech company is threatening to seek "drastic remedies," including the appointment of a trustee.
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