Saks Global to End Saks on Amazon Partnership Amid Bankruptcy Restructuring

Bankrupt luxury retailer Saks Global is preparing to end its “Saks on Amazon” partnership with e-commerce giant Amazon, according to a source with direct knowledge of the matter. The decision comes as Saks navigates Chapter 11 bankruptcy proceedings and refocuses its business strategy toward areas it believes offer stronger long-term growth.

The Saks on Amazon collaboration had already been under strain before Saks filed for bankruptcy earlier this month. While the retailer had not formally stated it would reject the contract under Chapter 11 provisions, the source confirmed that Saks will now wind down its Amazon storefront. The move allows the company to concentrate on driving traffic directly to Saks.com, which executives see as a more effective channel for strengthening the brand and improving margins.

According to the source, the Saks on Amazon storefront struggled with limited participation from luxury brands. Many high-end labels were reportedly hesitant to sell on a mass-market platform like Amazon, fearing it could dilute their brand image. These concerns had been growing for months, and industry insiders said several brands were expected to use bankruptcy negotiations as leverage to push back against the deal.

In a statement to Reuters, an Amazon spokesperson emphasized that Amazon’s broader luxury strategy remains intact, noting that its luxury store continues to expand with additional high-end designers. Saks declined to comment publicly on the decision.

The partnership originated from Amazon’s $475 million investment in Saks Global in 2024. Under the agreement, Saks committed to selling products on Amazon and paying the tech giant at least $900 million over eight years. However, signs of tension emerged during a recent bankruptcy court hearing. Amazon’s lawyer argued that Saks had improperly pledged its flagship Fifth Avenue store in Manhattan as collateral for a $1.75 billion loan used to fund operations during bankruptcy, claiming the property had already been pledged to secure Saks’ payment obligations to Amazon.

These disputes suggest potential legal battles ahead, further complicating the relationship. As Saks Global restructures, ending the Saks on Amazon partnership appears to be a strategic step aimed at preserving brand integrity, appeasing luxury partners, and stabilizing its core e-commerce business during a critical period.