CHARLOTTE, N.C. — Belk, the North Carolina-based division retailer chain which has catered to generations of customers for almost 190 years, introduced Tuesday it’s going to file for Chapter 11 chapter.
The chain’s proprietor, personal fairness agency Sycamore Companions, mentioned in a information launch that Belk will proceed with “regular operations” because it goes by way of chapter, The Charlotte Observer reported.
Sycamore Companions mentioned it expects to emerge from chapter by the tip of February. It should retain majority management of Belk, in line with an settlement it reached with a few of Belk’s collectors. A gaggle of the division retailer’s collectors, led by the personal fairness companies KKR and Blackstone, will get a minority stake. The chapter plan will assist Belk shed about $450 million of debt.
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“We’re assured that this settlement places us on the correct long-term path towards considerably decreasing our debt and offering us with larger monetary flexibility to satisfy our obligations and to proceed investing in our enterprise,” Belk CEO Lisa Harper mentioned in a press release.
The 133-year-old chain grew from the opening of a retailer in Monroe, North Carolina, by William Henry Belk in 1888. Three generations of the Belk household led the corporate to develop into the most important family-owned division retailer chain within the nation by 2015, when the household offered it for $three billion.
The sale to Sycamore loaded the chain with over $2 billion in debt at a time when department shops have been shedding reputation. The division retailer has struggled through the coronavirus pandemic as clients flocked to on-line buying and averted in-person buying.
Belk furloughed staff in March because the pandemic hit and minimize senior workers pay as much as 50% as shops briefly closed. In July, Belk minimize an undisclosed variety of jobs, principally at its headquarters in Charlotte, North Carolina. This adopted the elimination of 80 company jobs in February.
Belk has greater than 20,000 workers at its almost 300 shops in 16 Southeastern states. Its company places of work opened in 1988 in Charlotte, and now have about 1,300 staff.
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source https://correctsuccess.com/finance/department-store-chain-belk-filing-for-chapter-11-bankruptcy/
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