BY Fraser Tennant
One day after filing for Chapter 11 bankruptcy, department store chain Belk has successfully completed its financial restructuring – finalising an expedited pre-packaged reorganisation to emerge well-positioned for long-term growth.
Belk's reorganisation plan received nearly unanimous support from majority owner Sycamore Partners and lenders, including KKR Credit and Blackstone Credit, and provides for suppliers and landlords to be paid in full as normal operations continue at all store locations and on Belk's e-commerce platform.
"We are pleased to have received nearly unanimous support from all of our stakeholders to complete this restructuring in just one day, positioning us to pursue our growth initiatives and move the company forward from a strengthened financial foundation," said Lisa Harper, chief executive of Belk. "We are immensely grateful for our loyal customers, dedicated associates, and supportive vendor partners who enabled us to complete this restructuring efficiently, without delay or disruption.”
As a result of the Chapter 11 restructuring, Belk has received $225m of new capital, significantly reduced its debt by approximately $450m and extended maturities on all term loans to July 2025. The infusion of cash and reduction in debt provides Belk with increased liquidity to focus on its key initiatives for growth, including further enhancements to its omnichannel capabilities and the expansion of merchandise offerings into new, relevant product categories.
"I want to congratulate the team at Belk for its impressive transformation from a traditional department store business into a full omni retailer," adds Stefan Kaluzny, managing director of Sycamore Partners. "The company has tripled its web business and currently fulfils over 70 percent of its web orders from its stores, providing a nimble and scalable platform for expansion. It has been a remarkable undertaking in a very challenging macro environment."
Privately-owned, Charlotte-based Belk opened its first store in 1888 and currently serves customers at nearly 300 stores in 16 south-eastern states.
Ms Harper concluded: “Belk has a bright future ahead, and I am looking forward to growing our more than 130-year legacy as a trusted retailer for many years to come.”
News: Belk OK'd to exit bankruptcy less than 24 hours after it filed