Saks Global, which entered Chapter 11 earlier this month, has informed parties that it will wind down its "Saks on Amazon" storefront and end the e-commerce partnership with Amazon.com, a person with direct knowledge of the decision said. The retailer is taking the step to concentrate on areas of its business it believes will generate stronger growth, the person added.
According to that source, participation by brands in the Saks on Amazon storefront was limited, and Saks concluded it is better served directing customers to Saks.com. Saks declined to comment on the move.
An Amazon spokesperson responded with a statement highlighting the broader Amazon luxury offering, saying: "Beyond the Saks experience, the Amazon luxury store continues to offer a wide selection of high-end designer styles, and we’re adding more luxury brands regularly."
The partnership between the two companies originated from a $475 million capital investment by Amazon into Saks’ business in 2024. As part of that arrangement, Saks agreed to sell products on Amazon and, under the terms disclosed previously, was to pay the e-commerce firm at least $900 million over an eight-year period.
Tensions between the partners became more visible after Saks filed for bankruptcy. At a court hearing, Amazon’s attorney challenged aspects of Saks’ financial moves while in Chapter 11, arguing that Saks had improperly pledged its flagship Fifth Avenue store in Manhattan as collateral for a $1.75 billion loan that is providing liquidity as the company operates during bankruptcy. The attorney said that the Fifth Avenue property had already been earmarked as collateral intended to secure Saks’ obligations to Amazon under their partnership, raising questions about the rights attached to that asset.
In addition to the collateral dispute, the partnership faced resistance from top luxury brands that were concerned selling through a mass-market e-commerce platform could dilute their brand positioning. Two people familiar with the brands’ viewpoints said those brands were likely to use the bankruptcy process to press back against the arrangement.
Legal and negotiation dynamics appear poised to influence how the dissolution of the storefront and the broader partnership play out. The bankruptcy filing gives Saks the ability under Chapter 11 to reject contracts, and the company is now exercising that right with respect to the Amazon arrangement as it shifts strategic focus toward channels it believes will better support brand engagement and traffic.
Contextual note: The details included here reflect statements and developments disclosed in connection with Saks’ bankruptcy proceedings, the investment and contractual terms between Saks and Amazon, and commentary from parties involved or familiar with the situation.