Amazon.com (AMZN) is pushing back against Saks Global Enterprises’ move into Chapter 11, arguing that the luxury retailer violated an agreement tied to selling Saks products on Amazon’s site and that its equity stake in the now-bankrupt company is “presumptively worthless.”
Saks Global, which also owns Neiman Marcus and Bergdorf Goodman, filed for bankruptcy protection after running out of cash.
Amazon (AMZN) challenged Saks’ bid to fund its bankruptcy with financing that would provide the retailer with as much as $1.75 billion in fresh cash, Bloomberg reported, citing court documents filed late Wednesday.
The financing would saddle the retailer with billions of dollars of new obligations and includes other terms that would harm Amazon and other unsecured creditors of Saks, the filing said.
Sakslistedseveral luxury brands as creditors with the most unsecured claims, including Chanel [over $136M], Gucci owner Kering (PPRUF) [$59.9M], and LVMH (LVMHF) [~$26M].
