Amazon’s $475M Saks Global investment at risk after bankruptcy filing

Amazon is actively fighting to protect its $475 million equity investment in Saks Global after the luxury retailer filed for Chapter 11 bankruptcy protection on January 13. Amazon's investment was made in 2024 as part of Saks' $2.65 billion acquisition of Neiman Marcus, which included a commercial agreement for Saks to sell products on Amazon and guarantee at least $900 million in payments over eight years. However, Saks experienced rapid financial deterioration, leading to the bankruptcy filing. Saks has secured $1.75 billion in committed financing, including a $1 billion DIP loan. Amazon opposes this proposed financing, arguing in court filings that it would unduly burden Saks with new debt and negatively affect unsecured creditors, thereby jeopardizing Amazon's equity position.

(Source：Crypto Briefing)