Saks Ends Amazon Partnership While Navigating High-Stakes Bankruptcy

The iconic retailer Saks Global is officially ending its e-commerce partnership with Amazon. This decision follows the company’s recent bankruptcy filing in early January 2026. Furthermore, Saks intends to wind down its digital storefront on the mass-market platform. The company will now focus entirely on its own website, Saks.com. Initially, this alliance began with a significant $475 million investment from Amazon.

However, the Saks Amazon partnership faced major hurdles from the very beginning. Luxury brands expressed deep concern about selling on a massive e-commerce site. Consequently, limited brand participation hindered the storefront’s overall success and growth. Internal sources claim high-end designers feared the move would dilute their prestige. Therefore, Saks is using bankruptcy laws to exit the expensive eight-year contract.

Meanwhile, a legal battle is intensifying over the famous Fifth Avenue flagship store. Amazon argues the Manhattan property was pledged as collateral for their original deal. Nevertheless, Saks used the same building to secure $1.75 billion in bankruptcy loans. This dispute has soured the relationship between the two corporate giants significantly. Amazon lawyers recently described their equity stake in Saks as essentially worthless.

Despite the split, Amazon continues to expand its own luxury fashion offerings. An official spokesperson stated they are regularly adding more high-end designer styles. On the other hand, Saks is prioritizing exclusivity to win back shoppers. The retailer believes a private digital experience is better for its core business. Experts say this move highlights the growing tension between luxury and mass retail.

Currently, Saks remains operational while it restructures its massive debt under Chapter 11. The company hopes to emerge stronger by streamlining its digital and physical assets. However, the outcome depends on resolving complex legal fights with its former partners. Creditors are watching closely as the retailer tries to protect its luxury image. Ultimately, the end of this deal marks a new chapter for the brand.