Amazon is not happy with Saks

Core Viewpoint - Amazon's investment in Saks Global has turned problematic, with the e-commerce giant declaring its stake "presumptively worthless" and opposing Saks' bankruptcy financing plans [1][2]. Investment Details - Amazon invested $475 million in preferred equity in Saks Global in December 2024, coinciding with its acquisition of Neiman Marcus Group for $2.7 billion [1][3]. - The investment was contingent upon Saks entering a commercial agreement to sell products on Amazon's platform, which included a guaranteed payment of at least $900 million over eight years [4]. Financial Performance and Bankruptcy - Saks Global has failed to meet its budgets, incurred hundreds of millions in losses, and accumulated significant unpaid invoices to retail partners, leading to its Chapter 11 filing with a $1.75 billion financing package [2][3]. - Amazon's legal filings argue that the bankruptcy plan would burden Saks with additional debt, harming both Amazon and other creditors by misusing the value of Saks' flagship entities [5]. Legal Proceedings - Amazon has expressed a desire for Saks to address its concerns but has indicated it may pursue more severe actions, such as requesting the appointment of an examiner or trustee [3]. - A federal judge has granted Saks approval to access an initial round of its financing despite Amazon's objections [6].