NEW YORK, January 30 – Bankrupt retailer Saks Global has terminated its “Saks on Amazon” e-commerce partnership with Amazon.com. The decision allows the company to redirect efforts toward segments of its operations that promise stronger expansion.
Challenges in the Partnership
The collaboration faced significant hurdles even before Saks entered bankruptcy proceedings earlier this month. Under Chapter 11 protections, Saks had the option to reject the agreement but had not done so until now. The Saks on Amazon storefront struggled with minimal involvement from key brands, prompting the shift to prioritize traffic on Saks.com for better results.
Origins and Financial Commitments
This arrangement originated from Amazon’s $475 million investment in Saks back in 2024. As part of the deal, Saks committed to selling products on Amazon’s platform and paying the e-commerce leader at least $900 million over an eight-year period.
Legal Tensions Emerge
Tensions surfaced during a recent court hearing following the bankruptcy filing. Amazon’s legal representative contended that Saks misused its iconic Fifth Avenue flagship store in Manhattan as collateral for a $1.75 billion loan essential for ongoing operations. That property had previously been secured to back Saks’ obligations under the partnership agreement, raising the possibility of future disputes.
Brand Concerns Drive Pushback
Leading luxury brands associated with Saks voiced worries that exposure on a broad-market platform like Amazon could undermine their exclusivity. These concerns likely influenced negotiations during the bankruptcy process, as brands sought to limit their participation in the joint venture.
Amazon has yet to issue a statement on the termination.
