Belk To File Chapter 11 Bankruptcy Citing Pandemic Pressure

CHARLOTTE, NC — Charlotte-based Belk, Inc. will file Chapter 11 bankruptcy protection, according to the southeastern department store chain's owner Sycamore Partners, which says the restructuring will help the company eliminate about $450 million in debt.

Store operations at the nearly 300 Belk stores will not be affected, the company said.

"Belk plans to continue normal operations throughout its financial restructuring process," it said in a statement. "Customers will continue to receive the quality merchandise and service they expect when shopping at Belk's stores across the Southeast and online."

The 133-year-old company has experienced financial pressures in the past year due to the pandemic, which led to employee furloughs in March, pay cuts for senior staff, as well as the slashing of an undisclosed number of positions in July, The Charlotte Observer reported.

"Like all retailers navigating COVID-19, our priority has been the safety of our associates, customers and communities," Belk CEO Lisa Harper, said in a statement. "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 company said it expected to complete the expedited "pre-packaged" reorganization by the end of February.