economy
January 15, 2026
Amazon threatens 'drastic' action after Saks bankruptcy, says $475M stake is now worthless
Amazon invested $475 million into Saks' acquisition of Neiman Marcus. It wants a federal judge to reject Saks' bankruptcy plan because it harms creditors.
TL;DR
- Amazon filed court papers to reject Saks Global's bankruptcy financing plan.
- Amazon invested $475 million in Saks when it was acquired by Neiman Marcus, expecting Saks products on Amazon's site and technology/logistics expertise.
- Amazon claims its investment is now "presumptively worthless" due to Saks' failure to meet budgets, excessive spending, and unpaid invoices.
- Saks launched a "Saks at Amazon" storefront and agreed to pay Amazon referral fees, guaranteeing at least $900 million over eight years.
- Amazon argues the bankruptcy plan creates new debt for Saks and lowers Amazon's priority for repayment.
- Amazon may seek "more drastic remedies" if concerns are not resolved, such as an examiner or trustee appointment.
- Saks was granted approval to access $1.75 billion in new bankruptcy financing.
- Salesforce also became a minority shareholder in Saks but its plans regarding the bankruptcy are unclear.
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