Saks to reportedly shutter its Amazon storefront
The ongoing Saks Global bankruptcy filing continues involving investor and business partner Amazon.
Saks, whose bankruptcy funding plan was approved on Jan. 15 by the judge who is overseeing the case in a Houston federal court, will reportedly cease operations of its Saks on Amazon shopping experience in the Luxury Stores at Amazon online store.
[READ MORE: Saks opens luxury storefront on Amazon]
According to Reuters, sources indicated the luxury retailer felt it did not see good brand participation on its Amazon storefront and it would rather drive e-commerce traffic to its own website. The storefront’s curated selection includes women’s and men’s ready-to-wear, beauty, shoes, handbags and accessories from designer brands with regularly refreshed product arrays and access to the same fast, free shipping available when shopping at Amazon.
The Saks on Amazon storefront, which opened in April 2025, was tied to a $475 million investment Amazon as part of Saks’ $2.7 billion acquisition of Neiman Marcus Group in late 2024, with plans to work with the luxury retailer to innovate on behalf of customers and brand partners following the close of the transaction.
Amazon’s investment in Saks was also contingent on an agreement for Saks to sell products on the online giant’s platform, which included launching “Saks on Amazon.” In return, Saks agreed to pay a referral fee and guaranteed at least $900 million in payments to Amazon over eight years.
Saks Global Holdings has now secured approximately $1.75 billion in financing from a group of its bondholders to strengthen its balance sheet and allow it to operate during the bankruptcy process. The initial court filing put the company’s assets and its debts between $1 billion and $10 billion and its list of creditors include some of the biggest names in luxury retail.
Among those names is Amazon, which in a bid to have the court reject the financing plan said that its $475 million equity investment is now "presumptively worthless," saying Saks filed 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."
Saks declined comment to Reuters, while an Amazon spokesperson made a brief statement on the reported upcoming storefront closure.
"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 spokesperson told Reuters.
