Amazon sharply criticized Saks Global's bankruptcy financing plan, saying it undermines its rights as a creditor and leaves it with no realistic chance of recovering its $475m investment. That funding was provided in December 2024 as part of Saks' acquisition of Neiman Marcus, a $2.7bn deal aimed at strengthening Amazon's presence in the luxury sector. The agreement included commercial, technology and logistics integration between both groups, along with a commitment to pay up to $900m in commissions over eight years.
In a court filing, Amazon said its stake is now "presumed worthless,” citing Saks' rapid losses and the high level of debt accumulated with partners. The company challenged the structure of the restructuring plan, which it said is tilted in favor of certain internal entities, and warned it could pursue "drastic measures,” such as seeking the appointment of a court-appointed administrator. It said it still hopes to reach an amicable resolution.
Houston bankruptcy judge Alfredo Perez authorized Saks to access $1.75bn in post-bankruptcy financing, saying the support is essential to avoid an immediate liquidation. He has not yet ruled on Amazon's specific requests. The case could have broader repercussions, with other technology players such as Salesforce also having invested in the deal, albeit more modestly. For Amazon, the partnership was a strategic push to diversify into luxury retail, a sector it continues to explore despite mixed results so far.
Amazon.com, Inc. is one of the world leaders in on-line distribution of products to the general public. The group also operates a marketplace activity, allowing individuals and distribution companies to conduct their purchase and selling transactions for goods and services. The activity is organized around three families of products and services:
- electronic and computer products: toys, cameras, computers, laptops and peripherals, TVs, stereo systems, readers, wireless communication products, etc. Amazon.com also offers kitchen and garden equipment, clothing, beauty products, etc.;
- cultural products: books, musical products, video games and DVDs;
- other: primarily Internet interface and application development services.
Net sales break down by source of income between sales of services (58.7%) and sales of products (41.3%).
Net sales are distributed geographically as follows: the United States (68.3%), Germany (6.4%), United Kingdom (6%), Japan (4.3%) and others (15%).
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Investor
Investor
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Global
Global
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Quality
Quality
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