Belk’s Top Lenders Aim to Avoid Bankruptcy

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.