{"id":20611,"date":"2026-01-16T00:17:38","date_gmt":"2026-01-16T06:17:38","guid":{"rendered":"https:\/\/citystuff.com\/dallas\/2026\/01\/16\/amazon-blasts-saks-funding-deal-calls-equity-worthless\/"},"modified":"2026-01-16T00:17:39","modified_gmt":"2026-01-16T06:17:39","slug":"amazon-blasts-saks-funding-deal-calls-equity-worthless","status":"publish","type":"post","link":"https:\/\/citystuff.com\/dallas\/2026\/01\/16\/amazon-blasts-saks-funding-deal-calls-equity-worthless\/","title":{"rendered":"Amazon blasts Saks funding deal, calls equity \u2018worthless\u2019"},"content":{"rendered":"

Amazon Challenges Saks’ Bankruptcy Financing<\/h1>\n

Amazon is challenging Saks Global Enterprises\u2019 foray into Chapter 11, saying the luxury retailer breached a deal related to the sale of Saks products on its website and that its equity investment in the now bankrupt business is \u201cpresumptively worthless.\u201d<\/p>\n

Amazon challenged Saks\u2019 bid to fund its bankruptcy with financing that would provide the retailer with as much as $1.75 billion in fresh cash, according to court documents filed late Wednesday. The financing would saddle the retailer with billions of dollars of new obligations and includes other terms that would harm Amazon and other unsecured creditors of Saks, the filing said.<\/p>\n

Background of the Deal<\/h2>\n

In 2024, Amazon took a minority stake in the retailer as part of an agreement that helped facilitate Saks\u2019 $2.65 billion acquisition of Dallas-based Neiman Marcus. Amazon said it invested $475 million of preferred equity in the luxury retailer as part of the deal.<\/p>\n

Related<\/p>\n

The investment was also contingent upon an agreement for Saks to sell products on the e-commerce giant\u2019s platform, which included launching \u201cSaks on Amazon,\u201d according to Amazon\u2019s filing on Wednesday. In return, Saks agreed to pay a referral fee and guaranteed at least $900 million in payments to Amazon over eight years, the e-commerce giant said.<\/p>\n

Current Situation<\/h2>\n

\u201cSaks continuously failed to meet its budgets, burned through hundreds of millions of dollars in less than a year, and ran up additional hundreds of millions of dollars in unpaid invoices owed to its retail partners,\u201d Amazon alleged in its filing.<\/p>\n

U.S. Bankruptcy Judge Alfredo Perez in Houston gave the company permission to start tapping the so-called debtor-in-possession financing at the end of Saks\u2019 first court hearing late Wednesday evening. Saks advisers testified that the retailer risked liquidation if it didn\u2019t gain immediate access to the funding.<\/p>\n

The company\u2019s chief restructuring officer, Mark Weinsten, said earlier Wednesday that the retailer desperately needed additional financing to keep paying vendors and covering payroll and other expenses.<\/p>\n

Without access to that funding, Weinsten said, \u201cwe\u2019ll be dead in the water.\u201d The retailer was seeking court permission to make an initial $400 million draw, with the remaining amounts becoming available later in the Chapter 11 case.<\/p>\n

Amazon’s Opposition<\/h2>\n

A representative for Amazon declined to comment, while Saks didn\u2019t immediately respond to requests for comment.<\/p>\n

Days before Saks filed Chapter 11, Amazon said it would oppose the company\u2019s bankruptcy financing, according to a Jan. 9 letter made public Wednesday. Amazon claimed the luxury retailer needs the online giant\u2019s consent for a key part of the loan, but that Amazon refused to give its consent.<\/p>\n

Instead, Saks moved forward with financing from a group of existing lenders, an arrangement the retailer said would strengthen its business. The company said in a Wednesday statement that stores under all its brands were open.<\/p>\n

– Jonathan Randles and Steven Church for Bloomberg<\/p>\n

\"MichelleTexas Christian University, Neiman Marcus featured in latest \u2018Landman\u2019 episode<\/span>
\n<\/p>\n

Episode 9 of season 2 is out. Here are some of the North Texas references in it.<\/p>\n

\"The
\nLetters to the Editor \u2014 Neiman Marcus, minimum wage, Iranian protests, DART, AT&T<\/span>
\n<\/p>\n

Readers urge practicality about the downtown Neiman Marcus; support a higher minimum wage for Texas; support Iranian protesters; support DART; and discuss the AT&T building.<\/p>\n

D-FW Retail News<\/h2>\n

The latest on retail openings, closings and trends in D-FW.<\/p>\n

By signing up, you agree to our\u00a0Terms of Service\u00a0and\u00a0Privacy Policy.<\/p>\n

Conclusion<\/h2>\n

In conclusion, Amazon is challenging Saks’ bankruptcy financing, citing a breach of deal and claiming that its equity investment in the luxury retailer is “presumptively worthless.” The outcome of this case will have significant implications for the retail industry and the future of Saks Global Enterprises.<\/p>\n

Frequently Asked Questions<\/h2>\n

Q: What is Chapter 11 bankruptcy?<\/h3>\n

A: Chapter 11 bankruptcy is a type of bankruptcy that allows a company to restructure its debts and continue operating its business.<\/p>\n

Q: Why is Amazon opposing Saks’ bankruptcy financing?<\/h3>\n

A: Amazon is opposing Saks’ bankruptcy financing because it claims that the luxury retailer breached a deal related to the sale of Saks products on its website and that its equity investment in the now bankrupt business is “presumptively worthless.”<\/p>\n

Q: How much did Amazon invest in Saks?<\/h3>\n

A: Amazon invested $475 million of preferred equity in Saks as part of a deal that helped facilitate Saks’ $2.65 billion acquisition of Dallas-based Neiman Marcus.<\/p>\n","protected":false},"excerpt":{"rendered":"

Amazon Challenges Saks’ Bankruptcy Financing Amazon is challenging Saks Global Enterprises\u2019 foray into Chapter 11, saying the luxury retailer breached a deal related to the sale of Saks products on its website and that its equity investment in the now bankrupt business is \u201cpresumptively worthless.\u201d Amazon challenged Saks\u2019 bid to fund its bankruptcy with financing […]<\/p>\n","protected":false},"author":12,"featured_media":20613,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-20611","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-shopping"},"jetpack_featured_media_url":"https:\/\/dmn-dallas-news-prod.cdn.arcpublishing.com\/resizer\/v2\/RHV3SKF46RA2XEZWOLJWKFPK3Q.jpg?auth=e8be62638715e6069aba5e4f9178d9b2c35b55aa6788aa4fe98d1f6306ef0738&quality=80&width=1200&height=630&smart=true","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/posts\/20611"}],"collection":[{"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/comments?post=20611"}],"version-history":[{"count":1,"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/posts\/20611\/revisions"}],"predecessor-version":[{"id":20614,"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/posts\/20611\/revisions\/20614"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/media\/20613"}],"wp:attachment":[{"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/media?parent=20611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/categories?post=20611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citystuff.com\/dallas\/wp-json\/wp\/v2\/tags?post=20611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}