Belk Fast Tracks Bankruptcy as New Investors Give Sycamore Partners a Second Chance

Posted on 02/24/2021


Belk, Inc. is an American department store chain founded in 1888 by William Henry Belk in Monroe, North Carolina. Charlotte-based Belk will file for Chapter 11 bankruptcy on February 24 in an effort the company hopes will reduce debt by about US$ 450 million. The company’s majority owner is Sycamore Partners. Sycamore Partners is a private equity firm based in New York specializing in consumer and retail investments. The department store company entered a Restructuring Support Agreement. The agreement allows Sycamore Partners to retain control of Belk and provide US$ 225 million to keep the store going. KKR Credit (KKR), Blackstone Credit (Blackstone Group), and other participating lenders will become minority owners in the company.

Sycamore Partners has acquired Belk on December 10, 2015. Before the Sycamore buyout, Belk was the nation’s largest family owned and operated department store company with 296 Belk stores located in 16 Southern states. In 2014, Belk’s sales totaled US$ 4.1 billion.

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