"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 on Wednesday, just hours after Saks Global filed for Chapter 11 with a $1.75 billion financing package."
"Amazon invested the $475 million into Saks as it finalized its acquisition of Neiman Marcus Group in a $2.7 billion deal, according to the court filing. Amazon said the investment was conditioned on Saks entering into a commercial agreement with Amazon to sell Saks products on Amazon's website under a "Saks at Amazon" storefront. Under the agreement, Saks agreed to pay Amazon a referral fee for Saks-branded goods sold on the online platform and guaranteed at least $900 million in payments over eight years to the megacorporation."
Saks Global filed for Chapter 11 bankruptcy protection with a $1.75 billion financing package. Amazon invested $475 million of preferred equity in Saks Global in December 2024 as part of the Neiman Marcus Group acquisition. Amazon says that equity is now presumptively worthless after Saks failed to meet budgets, burned through hundreds of millions of dollars, and accrued hundreds of millions in unpaid invoices to retail partners. Amazon asked a federal judge to reject Saks's bankruptcy financing plan and warned it may seek appointment of an examiner or trustee or other drastic remedies. The investment had been conditioned on a "Saks at Amazon" commercial agreement guaranteeing at least $900 million in payments over eight years.
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