Merchandising
Belk department store chain filing for bankruptcy
January 29, 2021
North Carolina-based Belk, a department store chain, plans to file for Chapter 11 bankruptcy in an effort to eliminate $450 million in debt.
The 133-year-old brand, which is owned by private equity firm Sycamore Partners, hopes to regain financial flexibility with the strategy, according to a USA Today report.
"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," Belk CEO Lisa Harper said in a statement.
The chain began as a family business in Monroe, North Carolina, by William Henry Belk and became the biggest family-owned department store chain nationwide by 2015. That same year the family sold it for $3 billion.
When the COVID-19 pandemic hit in March, 2020 the company furloughed employees, temporarily closed stores and reduced senior pay. Four months later it slashed corporate jobs. It currently has 20,000-plus employees at its almost 300 locations.
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