Belk announced they have entered into a Restructuring Support Agreement (the “RSA”) with its majority owner, Sycamore Partners, according to a press release.
Belk expects to complete the financial restructuring transaction through an expedited “pre-packaged” reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company expects the transaction to be completed by the end of February. With the restructuring plan, Belk will reduce their debt by $450 million and plans to have completed the restructuring by the end of February,
Belk will maintain normal operations and no layoffs or store closures will occur.
“Belk has a 130-year legacy of providing quality products at great prices,” said Lisa Harper, Belk CEO in a release. “Like all retailers navigating COVID-19, our priority has been the safety of our associates, customers and communities. As the ongoing effects of the pandemic have continued, we’ve been assessing potential options to protect our future. We’re confident that this agreement puts us on the right long-term path toward significantly reducing our debt and providing us with greater financial flexibility to meet our obligations and to continue investing in our business, including further enhancements and additions to Belk’s omnichannel capabilities.”
Belk has two stores at the CoolSprings Galleria, a Men’s and Children’s store on the lower level and a Women’s and Home Store next to the playground.
The department store first opened back in 1888, owned by three generations of the Belk family before selling in 2015 to Sycamore Partners. They currently have 300 stores across 16 states in the Southeast.