(Bloomberg) — Amazon.com Inc. is challenging Saks Global Enterprises’ foray into Chapter 11, saying the luxury retailer breached a deal related to the sale of Saks products on its website and that its equity investment in the now bankrupt business is “presumptively worthless.”

Amazon challenged Saks’ bid to fund its bankruptcy with financing that would provide the retailer with as much as $1.75 billion in fresh cash, according to court documents filed late Wednesday. The financing would saddle the retailer with billions of dollars of new obligations and includes other terms that would harm Amazon and other unsecured creditors of Saks, the filing said.

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In 2024, Amazon took a minority stake in the retailer as part of an agreement that helped facilitate Saks’ $2.65 billion acquisition of Neiman Marcus. Amazon said it invested $475 million of preferred equity in the luxury retailer as part of the deal.

The investment was also contingent upon an agreement for Saks to sell products on the e-commerce giant’s platform, which included launching “Saks on Amazon,” according to Amazon’s filing on Wednesday. In return, Saks agreed to pay a referral fee and guaranteed at least $900 million in payments to Amazon over eight years, the e-commerce giant said.

“Saks continuously failed to meet its budgets, burned through hundreds of millions of dollars in less than a year, and ran up additional hundreds of millions of dollars in unpaid invoices owed to its retail partners,” Amazon alleged in its filing.

US Bankruptcy Judge Alfredo Perez in Houston gave the company permission to start tapping the so-called debtor-in-possession financing at the end of Saks’ first court hearing late Wednesday evening. Saks advisers testified that the retailer risked liquidation if it didn’t gain immediate access to the funding.

The company’s chief restructuring officer, Mark Weinsten, said earlier Wednesday that the retailer desperately needed additional financing to keep paying vendors and covering payroll and other expenses.

Without access to that funding, Weinsten said, “we’ll be dead in the water.” The retailer was seeking court permission to make an initial $400 million draw, with the remaining amounts becoming available later in the Chapter 11 case.