Headlines

Belk’s Top Lenders Aim to Avoid Bankruptcy

The company is attempting to reach out-of-court deal with lenders and private-equity firm

Published

3 years ago

January 22, 2021

VMSD Staff

KKR and other major lenders to department store Belk (Charlotte, N.C.) are in talks to keep it out of bankruptcy, reports CNBC.

The company, its lenders and the private-equity firm Sycamore Partners (New York) are reaching an out-of-court deal. The deal is not guaranteed, but Belk’s lenders have noted how the Chapter 11 bankruptcy process has proved difficult for other retail chains during the pandemic.

KKR and Blackstone are attempting to convert some of Belk’s $2.6 billion debt into equity, possibly through an out-of-court deal in which Sycamore retains ownership stake. KKR is reluctant to take Belk through an in-court bankruptcy process because of the high fees.

MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design