Belk Moves Forward On Financial Restructuring

Belk

Belk reaffirmed its expectation to complete its financial restructuring through an expedited “pre-packaged, one-day” reorganization. 

Company officials said the regional department store chain expects to file for Chapter 11 bankruptcy protection on February 24.



Lenders holding 99% of Belk’s first-lien term loan and 100% of Belk’s second lien term loan have entered into the previously announced Restructuring Support Agreement (the RSA). The RSA enables Belk to raise $225 million of new capital, significantly reduce debt by approximately $450 million and extend maturities on all term loans to July 2025.

Belk plans to continue normal operations throughout its financial restructuring. Under the RSA, suppliers will be unimpaired and will continue to be paid for all goods and services provided to the company. Shoppers will continue to receive the merchandise and service they expect when shopping at Belk’s stores across the Southeast and online at Belk.com.

Under the terms of the RSA, Sycamore Partners will retain majority control of Belk, which secured financing commitments for $225 million in new capital from Sycamore Partners, leading global investment firms KKR and Blackstone Credit, and other existing first lien term lenders (the Ad Hoc First Lien Lender Group).