Amazon’s $475M Saks Global investment is at risk after filing for bankruptcy.
Key receivers
Amazon has challenged Sachs Global Enterprises' Chapter 11 bankruptcy filing, disputing its proposed $1.75 billion financing. Amazon in 2010 In 2024, it invested $475 million in Saks, part of its $2.65 billion acquisition of Neiman Marcus.
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Amazon is fighting to save its stake in Saks Global after the luxury retailer filed for Chapter 11 and sought financing to manage the tech giant's equity.
In the year In 2024, Amazon invested $475 million in preferred equity to help Sachs complete its $2.65 billion acquisition of Neiman Marcus.
Under the terms of the two companies' commercial agreement, Sachs agreed to sell its products on Amazon, pay referral fees and pay at least $900 million to Amazon over eight years.
However, Saks' financial performance deteriorated rapidly, with missed budgets, high cash burn and unpaid invoices. Following severe financial pressure, the company filed for bankruptcy protection on January 13.
The company has secured $1.75 billion in committed financing, $1 billion in quick financing (DIP loans) for vendor and employee payments, and an additional $500 million available upon exiting bankruptcy.
The proposed bankruptcy financing has faced opposition from Amazon, court papers on Wednesday said, adding that it would overwhelm Sachs with new debt and negatively affect unsecured creditors.
Amazon had earlier rejected a deal for a significant portion of the loan, but Saks continued its existing creditor financing, insisting the move would stabilize operations and keep all stores open.
