Amazon Vs. Saks: Billions Burned and a Deal Gone Wrong

Amazon is urging a federal judge to reject Saks Global’s bankruptcy financing plan, arguing the retailer torched hundreds of millions of dollars.

Transcript

00:00Amazon is urging a federal judge to reject Sachs Global's bankruptcy financing plan,

00:06arguing the retailer torched hundreds of millions of dollars in less than a year

00:09and broke the terms of their partnership.

00:12The dispute stems from Amazon's $475 million investment

00:16tied to Sachs' $2.7 billion acquisition of Neiman Marcus,

00:21a deal that included selling luxury goods on Amazon

00:23and guaranteeing $900 million in referral payments.

00:27Amazon now says its equity stake is likely worthless

00:31and that the proposed financing unfairly piles new debt into parts of the business

00:36while pushing Amazon down the repayment line.

00:39While a judge has allowed Sachs to access almost $2 billion in emergency financing for now,

00:45Amazon warned it may seek more drastic action if its concerns are not resolved.