Saks Global Files for Bankruptcy After Amazon Fails to Crack Luxury Market

The $2.7 billion combination of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman files for Chapter 11 amid $4.9 billion in debt.

Published on Feb. 12, 2026

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After a failed attempt to create a digital luxury marketplace, Amazon is now fighting to protect its position as Saks Global seeks to cancel their agreement in bankruptcy court. The story traces the strategic missteps of Amazon, Neiman Marcus, and Saks as they tried to understand and cater to the luxury consumer.

Why it matters

This case highlights the challenges luxury brands face in adapting to the digital age and the difficulties of merging traditional retail with e-commerce. It also raises questions about the role of private equity and the risks of overleveraging in the retail industry.

The details

Amazon tried for nearly two decades to crack the luxury market, bringing in high-profile hires, opening glossy studios, and experimenting with fashion competitions. But luxury brands remained wary of Amazon's discounting, counterfeiting issues, and lack of brand control. When Saks Global was formed in 2024 to acquire Neiman Marcus, Amazon saw an opportunity, investing $475 million in preferred equity. However, the partnership is now being dismantled as Saks Global files for bankruptcy, with Amazon fighting to protect its position.

  • In 2008, Jeff Bezos hired Cathy Beaudoin to build a serious fashion business at Amazon.
  • In 2013, Amazon launched its Luxury Beauty store and opened a 40,000-square-foot photo and video studio in Brooklyn.
  • In 2020, Amazon tried again with Amazon Luxury Stores, an invitation-only experience launching with Oscar de la Renta.
  • In 2024, Saks Global was formed in a $2.7 billion deal, with Amazon investing $475 million in preferred equity.
  • In 2025, Saks Global filed for Chapter 11 bankruptcy protection amid $4.9 billion in debt.

The players

Amazon

An American technology company that has long sought to crack the luxury market, investing in high-profile hires, studios, and fashion experiments, but has struggled to win over luxury brands.

Saks Global

The $2.7 billion combination of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman that filed for Chapter 11 bankruptcy protection in 2025 amid $4.9 billion in debt.

Neiman Marcus

A luxury department store chain that was acquired by Saks Global in 2024, contributing to the company's eventual bankruptcy.

Richard Baker

The mastermind behind Hudson's Bay's 2013 acquisition of Saks, who resurfaces as a central figure in the Saks Global saga.

Marc Metrick

The former chief executive officer of Saks Global, who touted the company's data on 30 million luxury consumers before its collapse.

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What they’re saying

“We've got data on 30 million luxury consumers. We have 700 million visits to our website and record every move that customers make. We understand more and more about this luxury consumer.”

— Marc Metrick, Former CEO of Saks Global (WWD)

“Amazon seems like they're the most angered of anybody. It's kind of ironic when you think about it, because you can say Amazon's at fault for what screwed up the retail system in the world, yet they wanted to participate in it.”

— Sid Scheinberg, Bankruptcy lawyer (WWD)

What’s next

The dispute between Saks Global and Amazon over the use of the Fifth Avenue flagship store is ongoing in bankruptcy court, with both sides fighting to protect their interests.

The takeaway

This case highlights the challenges of merging traditional luxury retail with e-commerce, as well as the risks of overleveraging and the power of the luxury consumer. It serves as a cautionary tale for companies seeking to disrupt the luxury market without fully understanding its unique dynamics.