Amazon.com, Inc. (AMZN.US) steps on a luxury century-old store! Criticizes Saks for bankrupt financing, nearly 500 million US dollars of equity investment value is reduced to zero.

Amazon.com, Inc. (AMZN.US) questions the bankruptcy protection application filed by Saks Global, stating that the luxury retail company violated agreements related to selling Saks products on its website, and declaring that Amazon.com, Inc. considers its equity investment in this bankrupt enterprise to be "presumed worthless." According to court documents, Amazon.com, Inc. has raised concerns about Saks' proposal to provide funding for its bankruptcy through financing this financing would provide Saks with up to $1.75 billion in cash. The documents state that this financing would result in Saks taking on billions of dollars in new debt, including terms that would harm Amazon.com, Inc. and other unsecured creditors of Saks. Saks is one of the top luxury retail companies in the world. This century-old store has been a symbol of high-end retail in the United States since the 19th century. Its flagship store on Fifth Avenue in New York is renowned worldwide, and some limited edition styles from international luxury brands are only sold there. In late 2024, Saks underwent a major capital restructuring that included brand acquisitions, attracting investments from tech giants like Amazon.com, Inc., Salesforce, Inc., Apollo Global Management, and the Abu Dhabi Investment Authority, among many others. However, since the second half of 2025, Saks has been repeatedly plagued by negative news such as cash flow disruptions and unpaid supplier payments. Reports indicate that Saks failed to make a $100 million interest payment by the end of December 2025, effectively defaulting. It is reported that Amazon.com, Inc. acquired a minority stake in Saks in 2024 as part of a deal to help facilitate Saks' acquisition of the American chain of high-end department stores, Neiman Marcus Corporation, for $26.5 billion. Amazon.com, Inc. stated that as part of the transaction, it invested $475 million in preferred stock in this luxury retail company. According to documents submitted by Amazon.com, Inc. on Wednesday, this investment is also contingent on an agreement that Saks must sell products on the e-commerce giant's platform, including launching "Saks on Amazon.com, Inc." In return, Saks agreed to pay referral fees and guarantee to pay at least $900 million to Amazon.com, Inc. within eight years. However, according to Amazon.com, Inc.'s allegations in its filing: "Saks has consistently failed to meet its budget, burning through hundreds of millions of dollars in less than a year, and owes its retail partners hundreds of millions of dollars." A U.S. judge allowed Saks to begin utilizing so-called "debtor-in-possession financing" at the end of its first hearing on Wednesday evening. Advisers for Saks testified that without immediate access to these funds, the retailer faces the risk of liquidation. Mark Weinstein, Saks' Chief Restructuring Officer, earlier on Wednesday stated that the retailer urgently needs additional financing to continue making payments to suppliers, as well as paying wages and other expenses. Mark Weinstein said, "Without this funding, we are stuck." The retailer is seeking court approval to first access an initial $400 million, with the remaining amount to be in place later in the Chapter 11 bankruptcy protection process. Furthermore, according to a letter dated January 9 released on Wednesday, just days before Saks filed for bankruptcy protection, Amazon.com, Inc. stated it would oppose the retailer's bankruptcy financing. Amazon.com, Inc. claimed that the luxury retailer needed its approval for a crucial part of the loan, which Amazon.com, Inc. refused to give consent for. In contrast, Saks has moved forward with arrangements to obtain financing from a group of existing lenders, which the retailer claims will strengthen its business. The company stated in a statement on Wednesday that all stores of its brands are operating as usual.