The department store retailer is inching closer to finalising a deal that would provide its lenders with a stake in the company.
Although the terms of the deal aren’t final and are still subject to change, it has been reported that the deal would take the department store chain through a pre-arranged restructuring of its debt.
The department store has grown to almost 300 sites in 16 states after its launch in 1888. The formerly-family owned business was purchased by Sycamore Partners in 2015 for a price of $3bn. Sycamore Partners are known for acquiring struggling retailers and has recently purchased Ann Taylor and three other brands from Ascena Retail Group.
Belk is not alone in their recent turbulence. A number of department stores have struggled to remain relevant against online competition and were particularly hard hit at the onset of the Coronavirus pandemic. To cope with this situation, Belk has delayed payments and in some cases put a halt to them.
