Belk announced Tuesday they have filed for Chapter 11 bankruptcy and have entered into a restructuring agreement with a private equity firm. Under the terms of the restructuring agreement, the equity firm, Sycamore Partners, will retain control of the company. Sycamore has promised $225 million in new capital.
Belk CEO Lisa Harper said, “Belk has a 130-year legacy of providing quality products at great prices. 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.”
Customers should not see any changes in the products at Belk stores across the Southeast or while shopping online.
Belk has several locations in the area including Smithfield, Dunn, Clinton, Goldsboro and Wilson.