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    Amazon invested $475M when Saks acquired Neiman Marcus in December 2024 on the promise of an exclusive partnership, but Saks filed for Chapter 11 just weeks later

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    Court filing shows Amazon says its equity stake is “now presumptively worthless” and blames Saks for failing budgets and burning cash at an unsustainable rate

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    Amazon is pushing back against Saks’ bankruptcy financing plan that would saddle operations with new debt and push the tech company further down the creditor repayment line

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    If Saks doesn’t resolve Amazon’s concerns, the company hints it may “seek more drastic remedies” including appointing an examiner or trustee to oversee the process

Amazon just watched its $475 million gamble on luxury retail evaporate overnight. The e-commerce giant filed legal papers Wednesday demanding a federal judge reject Saks Global’s bankruptcy financing plan, arguing the department store “burned through hundreds of millions of dollars in less than a year” and broke its core agreements. It’s a stunning reversal for one of tech’s most ambitious retail bets and signals how quickly Amazon’s carefully structured investment deal could unravel in bankruptcy court.

Amazon is pulling the emergency cord on its Saks investment. In court papers filed Wednesday just hours after Saks Global filed for Chapter 11 bankruptcy protection, the e-commerce giant’s lawyers came out swinging, describing a retail operation that collapsed under its own weight almost immediately after a major acquisition.

The $475 million Amazon invested when Saks acquired Neiman Marcus for $2.7 billion in December 2024 was supposed to be a strategic masterstroke. Amazon would get guaranteed placement for luxury fashion and beauty on its sprawling marketplace through an exclusive “Saks at Amazon” storefront. In return, Saks agreed to minimum payments of at least $900 million to Amazon over eight years in referral fees. The tech company would also provide technology and logistics expertise to modernize the struggling department store chain.

What happened instead, according to Amazon’s court filing, was a financial catastrophe. “That equity investment is now presumptively worthless,” Amazon’s attorneys wrote bluntly. “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.”

The speed of the implosion is almost breathtaking. Less than 13 months separated the Neiman Marcus acquisition from bankruptcy filing. For a deal Amazon structured to gain influence over the combined company’s operations and guarantee revenue streams, the collapse represents a significant setback in the company’s broader push to establish deeper roots in luxury retail and physical commerce.

Amazon isn’t just writing off the loss quietly. The company is actively fighting to protect its interests in the bankruptcy process. Its filing argues that