‘Saks on Amazon’ shuts down as department store reels

Saks will be shutting down its ‘Saks on Amazon’ online shop, according to a report by Reuters. 

The move comes in the aftermath of Saks having filed for Chapter 11 bankruptcy just last month, with creditors being owed millions.

According to Reuters, a source close to Saks said that it will allow the wounded department store to focus on parts of its business “it sees as spurring more growth.”

The partnership launched less than a year ago, and partly came about because Amazon had been a significant investor (to the sum of $475 million) as part of Saks’ acquisition of Neiman Marcus in 2024.

It had never felt like a happy marriage, and rumors were swirling long before Saks’ financial strife that its luxury vendors were dubious about how good a fit the Amazon platform was for them, and whether there was a danger that selling on such mass market sites may dilute their brand.

Amazon sits on the newly formed Official Committee of Unsecured Creditors, as appointed by the US Trustee’s Office. Also on this committee are Chanel (owed $136 million), LVMH (owed $26 million) and Kering Americas (owed $60 million). 

These companies will hope to be at the front of the queue for payments, after Saks Global asked the court for permission to pay $337 million to ‘critical’ vendors to ensure continued inventory flow and customer loyalty.