Saks Global to exit Amazon partnership during bankruptcy – report

Core Viewpoint - Saks Global is planning to terminate its "Saks on Amazon" partnership as it undergoes restructuring under Chapter 11 bankruptcy protection, focusing on areas expected to yield stronger growth [1][2]. Group 1: Partnership Details - The partnership with Amazon was initiated following a $475 million investment by Amazon in Saks in 2024, with Saks agreeing to sell merchandise through Amazon and pay at least $900 million over eight years [2]. - The collaboration faced challenges as Saks sought court protection, and the company had not publicly announced its intention to end the contract prior to this decision [1][2]. Group 2: Legal and Brand Concerns - Tensions between Saks and Amazon were highlighted during a court hearing, where Amazon's lawyer indicated that Saks had improperly pledged its flagship Fifth Avenue property as security for a $1.75 billion loan, which could lead to disputes [3]. - Key luxury brands associated with Saks expressed concerns about the partnership, fearing that selling through a mass-market platform could dilute their brand positioning, and they were expected to leverage the bankruptcy discussions to contest the arrangement [4]. Group 3: Strategic Shift - As part of its Chapter 11 process, Saks Global plans to close most of its Saks OFF 5TH outlets and all remaining Last Call stores, indicating a strategic shift towards luxury and full-price retailing [4][5].