Saks, the failing retailer once known as Saks 5th avenue, is filing for bankruptcy, and Amazon is fighting this, because it will make its $457,000,000.00 investment worthless. (Wiping out stockholders is a feature, and not a bug of corporate bankruptcy.
It seems that Amazon bought into the less than successful acquisition of Neiman Marcus, with the hope of selling overpriced crap with a high end name.
Pardon me while I clean my screen.
Amazon wants a federal judge to reject Saks Global's bankruptcy financing plan, writing in court papers the beleaguered department store "burned through hundreds of millions of dollars in less than a year" and failed to hold up their agreement.
When Saks acquired Neiman Marcus for $2.7 billion in December 2024, Amazon invested $475 million into the venture on the grounds the retailer would start selling its products on Amazon's website and the tech company would offer technology and logistics expertise.
………
As part of the deal, Saks launched a branded "Saks at Amazon" storefront on the e-commerce company's website featuring a range of luxury fashion and beauty items. It also agreed to pay a referral fee for Saks-branded goods sold on the platform, guaranteeing at least $900 million in payments to Amazon over eight years.
In its filing, Amazon argued that Saks' bankruptcy financing plan harms the company, and other creditors, because it saddles parts of the Saks corporation with new debt that it previously didn't have. It also pushes Amazon further down the pecking order in terms of repayment, which reduces the amount it could potentially be repaid during the proceedings, the e-commerce company said in the filings.
Amazon's argument is basically, "How dare they go bankrupt without us having the opportunity to suck them dry for a decade first."
That's some sweet, sweet schadenfreude.
0 comments :
Post a Comment