Amazon is opposing Saks Global’s bankruptcy financing plan, claiming the department store burned through millions in less than a year. When Saks acquired Neiman Marcus for $2.7 billion in 2024, Amazon invested $475 million in the venture. Amazon now believes its equity investment in Saks is worthless due to financial mismanagement.

As part of the deal, Saks launched a branded “Saks at Amazon” storefront on Amazon’s website, agreeing to pay at least $900 million in referral fees over eight years. Amazon argues that Saks’ bankruptcy financing plan harms the company and other creditors by pushing Amazon further down the repayment line.

Amazon may seek “more drastic remedies,” including appointing an examiner or trustee, if Saks doesn’t address its concerns. A judge allowed Saks to tap into $1.75 billion in new bankruptcy financing, arguing the company faced immediate liquidation without it. Amazon hopes for a resolution, but the judge has yet to rule on the matter.

Saks’ acquisition of Neiman Marcus attracted new investors, including tech industry names. Amazon aimed to expand its luxury selection by guaranteeing Saks’ presence on its webstore. The deal raised the possibility of Amazon deepening its investment in Saks, reflecting its interest in physical retail expansion.

Amazon has prior investment agreements, such as a stake in Grubhub. Salesforce also became a minority shareholder in Saks during the Neiman Marcus acquisition. Amazon and Salesforce’s response to Saks’ bankruptcy plan remains unclear. Saks and Amazon declined to comment beyond their court filings.

Read more at CNBC: Amazon says Saks investment is worthless after bankruptcy