NC-based department store Belk files for bankruptcy
Posted January 26, 2021 3:38 p.m. EST
Updated January 27, 2021 12:13 p.m. EST
Charlotte, N.C. — The popular department store chain Belk announced Tuesday it has filed for bankruptcy.
The North Carolina-based company has entered into a restructuring agreement with its majority owner, Sycamore Partners, and its debt holders on a plan to recapitalize the business and reduce debt.
Belk says its stores will remain open during the restructuring process.
"Belk has a 130-year legacy of providing quality products at great prices," Belk CEO Lisa Harper said. "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."
The 133-year-old company tweeted Tuesday that its stores are here to stay. It expects the transaction to be completed by the end of February.