Amazon is taking a strong stand against luxury retailer Saks Global. The e-commerce giant is actively pushing back on Saks Global's bankruptcy financing proposal. Saks Global recently filed for Chapter 11 bankruptcy protection.
Amazon Issues Stern Warning
Amazon has issued a clear warning. The company says it may pursue more drastic measures if Saks does not address its concerns. Saks Global owns the famous department stores Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
A Major Investment Gone Sour
Amazon made a significant $475 million preferred equity investment in Saks Global in December 2025. This investment happened as Saks finalized its $2.7 billion acquisition of Neiman Marcus Group. Court documents confirm this financial move.
Amazon now states its stake in Saks is presumptively worthless. The company has formally asked a federal judge to reject the retailer's bankruptcy financing plans. Amazon argues this plan would further reduce its chances of recovering any funds.
Amazon's Legal Argument
Amazon's attorneys detailed their position in a court filing. They submitted this document just hours after Saks Global filed for Chapter 11. Saks filed with a $1.75 billion financing package in place.
The legal team wrote that the equity investment is now presumptively worthless. They cited Saks continuously failing to meet budgets. The company burned through hundreds of millions of dollars in less than a year. Saks also ran up additional hundreds of millions in unpaid invoices owed to retail partners.
Court Battle in Texas
Amazon filed this motion in a Texas federal bankruptcy court. The company expresses hope that Saks will resolve its concerns. However, Amazon warns it may be forced to seek more drastic remedies. These could include requesting the appointment of an examiner or a trustee.
In its court filings, Amazon claims the proposed financing would saddle Saks with billions of dollars of obligation for no material benefit. It also argues the plan would improperly use the value of Saks Global's flagship entities. This would prop up other debtors at the expense of their creditors, including Amazon.
Underlying Financial Struggles
Reports indicate Saks has been running out of cash and struggling to pay its bills. These difficulties started after its $2.7 billion acquisition of Neiman Marcus in 2024. The deal was heavily financed with debt, creating a significant financial burden.
Salesforce Also Affected
Software giant Salesforce also holds a minority stake in Saks from the Neiman Marcus acquisition. However, Salesforce has a smaller investment compared to Amazon's substantial $475 million.
What Went Wrong for Saks?
Saks caters to some of the world's wealthiest shoppers. Despite this affluent customer base, the luxury retailer has steadily run out of cash. The company has failed to pay some of its bills following the 2024 Neiman Marcus acquisition. The $2.7 billion deal was financed with substantial debt, creating ongoing financial pressure.
