Belk, a popular department store chain based in the South, announced on Tuesday (January 26) is has filed for bankruptcy. The North Carolina-based retailer plans to keep stores open and maintain operation as it restructures under Chapter 11 of the U.S. Bankruptcy Code, ABC 11 reports.
"Belk has a 130-year legacy of providing quality products at great prices," said Belk CEO Lisa Harper. "Like all retailers navigating COVID-19, our priority has been the safety of our associates, customers and communities. 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."
Belk opened its first store in 1888 and has since expanded its operations to nearly 300 stores in 16 states around the Southeast. North Carolina alone has 65 locations.
In 2015, Belk was sold to Sycamore Partners, leaving the company with more than $2 billion in debt, according to the News & Observer. The group will remain majority stakeholder of the company after the reorganization and financial restructuring, which is expected to be completed by the end of February.
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