Amazon is very upset with luxury retailer Saks Global. The ecommerce giant Amazon is pushing back against Saks Global’s bankruptcy financing plan. Saks Global filed for Chapter 11 bankruptcy protection recently. Amazon has warned that it may seek “more drastic measures” if Saks doesn’t “resolve” its concerns. Saks is the owner of department stores Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. The e-commerce giant invested $475 million of preferred equity in Saks Global in December 2025. As per court filing, Amazon invested the $475 million into Saks as it finalized its acquisition of Neiman Marcus Group in a $2.7 billion deal.Amazon says its stake in Saks is now “presumptively worthless”. The company has asked a federal judge to reject the retailer’s bankruptcy financing plans, reason being that it will further diminish its chances of recovery. “That equity investment is now presumptively worthless after Saks continuously failed to meet its budgets, burned through hundreds of millions of dollars in less than a year, and ran up additional hundreds of millions of dollars in unpaid invoices owed to its retail partners,” Amazon’s attorneys wrote in a court filing, just hours after Saks Global filed for Chapter 11 with a $1.75 billion financing package.Amazon has filed the motion in Texas federal bankruptcy court. The company says that it “hopes” Saks will “resolve” its concerns, but warned that it may be forced to “seek more drastic remedies,” including the appointment of an examiner or a trustee. In court filings, Amazon said the financing would “saddle” Saks with “billions of dollars of obligation for no material benefit” and improperly use the value of Saks Global’s flagship entities to prop up other debtors at the expense of their creditors, including Amazon.Saks reportedly has been running out of cash and struggling to pay its bills since its acquisition of Neiman Marcus for $2.7 billion in 2024.
Salesforce too hit by Saks bankruptcy
Software giant Salesforce too holds a minority shareholder in Saks during its acquisition of Neiman Marcus, but the company has a smaller stake than Amazon.
What went wrong with Saks
Though Saks caters to some of the richest shoppers in the world, the luxury retailer has been steadily running out of cash and failing to pay some of its bills after it acquired its longtime rival Neiman Marcus in 2024 in a $2.7 billion deal heavily financed with debt.
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