Saks to End E-Commerce Partnership with Amazon, Source Reveals

• The partnership required Saks to pay Amazon at least $900 million over eight years, but saw limited participation from luxury brands concerned about mass-market association
• Amazon's lawyer alleged at bankruptcy proceedings that Saks improperly pledged its flagship Fifth Avenue store as collateral for a $1.75 billion loan, claiming the property was already collateralized for Amazon payments
• Saks plans to wind down the Amazon storefront to concentrate on driving traffic to Saks.com, with luxury brand partners expected to use bankruptcy negotiations to further challenge the deal

Saks Ends E-Commerce Partnership with Amazon Amid Bankruptcy

Bankrupt luxury retailer Saks Global is terminating its "Saks on Amazon" partnership with Amazon.com, according to a source with direct knowledge of the decision. The move, announced Friday, allows Saks to exercise its contract rejection rights under Chapter 11 bankruptcy protection, which the company filed earlier in January 2026.

Partnership Background:

The collaboration stemmed from Amazon's $475 million investment in Saks in 2024, with Saks agreeing to pay Amazon at least $900 million over eight years to sell products on the platform. However, the source indicated the storefront "saw limited brand participation," prompting Saks to refocus efforts on driving traffic to its own Saks.com website.

Key Issues:

The partnership faced multiple challenges:

• Luxury brands expressed concerns that selling on a mass-market platform would dilute their prestige
• Legal tensions emerged over collateral disputes, with Amazon's lawyer claiming Saks improperly pledged its flagship Fifth Avenue Manhattan store as collateral for a $1.75 billion bankruptcy loan—property allegedly already collateralized for Amazon payments
• The relationship had "soured" according to court hearing comments, suggesting potential future legal battles

Market Implications:

This development highlights the tension between traditional luxury retail and mass-market e-commerce platforms. Saks' decision reflects broader challenges in maintaining brand exclusivity while pursuing digital growth strategies. The collapse of this high-profile partnership may discourage similar luxury-mainstream e-commerce collaborations and signals Saks' strategic pivot during restructuring to preserve its premium market positioning.