Belk files Chapter 11 bankruptcy in Houston, giving the retail icon a lifeline [View all]
Once one of Charlotte’s top companies, Belk filed Chapter 11 bankruptcy in Houston late Tuesday. It’s the first step in the Charlotte retail icon’s reorganization plan that will see its owner, Sycamore Partners, cede a large stake of the company to its lenders while maintaining control.
If approved, the bankruptcy plan is slated to give Belk a new infusion of capital and cut its debt load by about $450 million.
The hearing for the bankruptcy, which is expected to be completed in a quick 24 hours, is scheduled for 3 p.m. EST Wednesday.
A little more than five years since the Belk family sold the department store for about $3 billion, Belk found itself bankrupt after a daunting debt load, shifting consumers tastes and a dying business model were all magnified by the COVID-19 pandemic.
Read more: https://www.heraldonline.com/news/state/north-carolina/article249433360.html
(Rock Hill Herald)
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