Amazon threatens 'drastic' action after Saks bankruptcy, says $475M stake is now worthless

[mahatmakanejeeves]

Source: CNBC

Retail
Amazon threatens 'drastic' action after Saks bankruptcy, says $475M stake is now worthless

Published Thu, Jan 15 2026 10:49 AM EST
Updated 3 Hours Ago

Gabrielle Fonrouge
@fonrougegab
@in/gabrielle-fonrouge
Annie Palmer
@in/annierpalmer/

KEY POINTS
• Amazon filed an objection to Saks Global's bankruptcy financing plan on the grounds it could harm creditors and push the tech company further down the repayment pecking order.
• The tech company invested $475 million into Saks' acquisition of Neiman Marcus, a stake it said is now effectively "worthless."
• Amazon threatened more "drastic remedies" if Saks doesn't heed its concerns, including the appointment of an examiner or a trustee.

Amazon wants a federal judge to reject Saks Global's bankruptcy financing plan, writing in court papers the beleaguered department store "burned through hundreds of millions of dollars in less than a year" and failed to hold up their agreement.

When Saks acquired Neiman Marcus for $2.7 billion in December 2024, Amazon invested $475 million into the venture on the grounds the retailer would start selling its products on Amazon's website and the tech company would offer technology and logistics expertise.

Amazon wants a federal judge to reject Saks Global's bankruptcy financing plan, writing in court papers the beleaguered department store "burned through hundreds of millions of dollars in less than a year" and failed to hold up their agreement.

When Saks acquired Neiman Marcus for $2.7 billion in December 2024, Amazon invested $475 million into the venture on the grounds the retailer would start selling its products on Amazon's website and the tech company would offer technology and logistics expertise.

{snip}

Read more: https://www.cnbc.com/amp/2026/01/15/amazon-says-saks-investment-is-worthless-after-bankruptcy.html

[bucolic_frolic]

1. Hilarious! Equity holders are usually wiped out in bankruptcy court

Wasn't always the case, but very common, usual even at this point in time. You took the risks. You misjudged.

[sop]

2. Amazon's business model put a lot of brick and mortar stores out of business.

[Tasmanian Devil]

3. Private profits, public risk

Boycott Amazon

[DJ Synikus Makisimus]

4. The bigger question is WTF was Bezos thinking?

Just like Trump can't lose, Bezos apparently can't either. One can but wonder if Bezos has handed over enough cash to Trump, Leonard Leo and their cronies to get a ruling in their favor.

[unblock]

5. Oh the delicious irony of Amazon paying for something that turned out to be not as advertised and worthless

[Prairie Gates]

6. That's a shame

[Buddyzbuddy]

7. We should pass the hat around for Bezos, NOT!.

I agree, it's a real shame.

[travelingthrulife]

8. We need to break up companies like Amazon. Far too big too much political power.

I'm guessing Amazon Boy was at Trump's sex trafficking parties.

[SomewhereInTheMiddle]

9. I guess they didn't read the warnings...

"An investor may get back less than the amount invested. Information on past performance, where given, is not necessarily a guide to future performance."

"The capital value of units in the fund can fluctuate and the price of units can go down as well as up and is not guaranteed."

If Amazon was actively involved in "offer[ing] technology and logistics expertise" over the last year that Saks "burned through hundreds of millions of dollars" weren't they partially at fault and aware of the hole the company was digging for itself?

Finding it hard to come up with sympathy for either company though I do have concern for regular folk that may have money tied up in either or both - either knowingly or through retirement funds. I mean I don't know that I'm not one.