Amazon package and Saks Fifth Avenue bag.
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Amazon wants a federal judge to reject it Saks Global bankruptcy financing planwriting in court documents a beleaguered department store “burned through hundreds of millions of dollars in less than a year” and failed to deliver on its commitments.
When Saks bought Neiman Marcus In December 2024, the $2.7 billion Amazon retailer will begin selling its products on Amazon’s website, and the tech company has invested $475 million in the venture as it provides technology and logistics expertise.
“This equity investment is now presumptively worthless,” Amazon’s lawyers wrote in a filing Wednesday, hours after Sachs filed for Chapter 11 bankruptcy protection. “Saks consistently failed to meet their budgets, burned through hundreds of millions of dollars in less than a year, and racked up hundreds of millions of dollars in unpaid invoices to retail partners.”
Sakas as part of the deal has been activated Saks at Amazon, a branded store featuring a range of luxury fashion and beauty items on the e-commerce company’s website. It also agreed to pay referral fees for Saks-branded merchandise sold on the platform, guaranteeing it would pay Amazon at least $900 million over eight years.
In its filing, Amazon argued that Sachs’ bankruptcy financing plan would harm the company and other creditors because it would fill parts of the Sachs corporation with new debt that did not exist before. It also hurts Amazon in terms of reimbursement, which would reduce the amount that could be recovered in the lawsuit, the e-commerce company said in the filings.
Amazon wrote that it “hopes” Sachs will resolve its issues, but if it doesn’t, it “may seek more drastic measures,” including the appointment of an examiner or trustee.
During a hearing in U.S. Bankruptcy Court in Houston on Wednesday, Judge Alfredo Perez allowed Sachs to begin a new $1.75 billion bankruptcy filing after arguing that the company would be liquidated without him. It has not yet ruled on Amazon’s request.
Saks’ acquisition of Neiman Marcus brought in a host of new investors, including names from the technology industry. For Amazon, the deal guaranteed Saks access to the ubiquitous web store the company had been striving for. attracting big brands and grows its fashion choices, namely.
The stock deal also raised the possibility of Amazon deepening its investment in the department store chain. Amazon has decided to get more involved in physical retail, and it has experimented with several concepts over the years, killing a few along the way.
The company has previously made similar investment agreements. Amazon in 2022 received a 2% share At GrubHub, the food delivery company adds discounts to Prime members instead. Amazon expanded its share in the company to 18% in 2024.
Amazon declined to comment beyond what is stated in the documentation. Sachs did not immediately respond to a request for comment.
The software giant Salesforce Saks also became a minority shareholder in its acquisition of Neiman Marcus, although it took a smaller stake than Amazon. It is not known whether he plans to file an objection to the bankruptcy plan.