Sycamore Negotiates To Keep Belk Out Of Chapter 11

In another case of a department taking a sales hit as consumers stayed safe at home in the COVID 19 pandemic, Belk is wobbbling, but it’s parent company Sycamore Partners is trying to keep it out of Chapter 11 bankruptcy, according to a report in the Wall Street Journal.

KKR & Co., Blackstone Group Inc. and other big lenders to department store chain are in talks with the retailer and Sycamore to avoid bankruptcy after the Chapter 11 process proved hard to manage for other retailers during the pandemic, the Journal stated, attributing the information to people in the know.

Although nothing is certain, the Journal indicated that the lender and Sycamore are close to a deal that will keep the retailer out of court.

Belk had to close stores early last year due to the COVID-19 pandemic, reopening them in starting May 1.