Amazon.com (AMZN) is challenging Saks Global Enterprises' foray into Chapter 11 and its bankruptcy financing plan, alleging breach of contract, Bloomberg News reported Wednesday, citing court documents.

The e-commerce giant claimed that the luxury retailer violated an agreement governing the sale of Saks products on its website and that its equity investment in the business is now "presumptively worthless," the news outlet reported.

Amazon is contesting the retailer's proposed bankruptcy financing, which would inject up to $1.75 billion in new cash, saying it would harm it and other unsecured creditors, Bloomberg reported.

Amazon and Saks didn't immediately respond to MT Newswires' requests for comment.

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