Amazon Loses Fight To Block Saks Bankruptcy Financing, Says Report: Company Warns Of 'Drastic Remedies'

Core Viewpoint - A U.S. bankruptcy judge has dismissed Amazon's attempt to block a $400 million financing deal for Saks Global Enterprises during its Chapter 11 bankruptcy proceedings [1]. Group 1: Bankruptcy Proceedings - Saks is seeking $1.75 billion to continue operations and will require further approvals from the U.S. District & Bankruptcy Court for the Southern District of Texas [2]. - Saks filed for bankruptcy with $3.4 billion in debt, citing cash shortfalls after its merger with Neiman Marcus, which hindered its ability to restock inventory [6]. Group 2: Amazon's Involvement - Amazon's investment in Saks, amounting to $475 million as part of a $2.7 billion acquisition of Neiman Marcus, is now considered presumptively worthless due to Saks' financial mismanagement [4]. - Amazon has expressed concerns over Saks' financial management, stating that the retailer has "burned through hundreds of millions of dollars in less than a year" and failed to meet their agreement [3]. Group 3: Financial Challenges - Saks is facing a "luxury liquidity crisis," with lenders debating whether to inject more capital to sustain the luxury department store amid ongoing financial difficulties [5]. - The company has struggled with payments and has requested suppliers to extend past-due bills, surprising many in the luxury retail sector [5].