Belk announced the successful completion of its financial restructuring, finalizing an expedited prepackaged, one-day reorganization, and emerged well-positioned for long-term growth.

WHO: Charlotte-based Belk, Inc., a privately owned department store, opened its first store in 1888, beginning a legacy of selling great products at great prices, treating customers like family, and giving back to the community. Today, Belk serves customers at nearly 300 Belk stores in 16 Southeastern states, at belk.com, and through the mobile app.

WHY: The infusion of cash and reduction in debt provides Belk with increased liquidity to focus on its key initiatives for growth, including further enhancements to its omni-channel capabilities and the expansion of merchandise offerings into new, relevant product categories.

IN THEIR OWN WORDS: “We are pleased to have received nearly unanimous support from all of our stakeholders to complete this restructuring in just one day, positioning us to pursue our growth initiatives and move the company forward from a strengthened financial foundation,” said Lisa Harper, Belk CEO. “We’re immensely grateful for our loyal customers, dedicated associates, and supportive vendor partners who enabled us to complete this restructuring efficiently, without delay or disruption. We have a bright future ahead, and I’m looking forward to growing our more than 130-year legacy as a trusted retailer for many years to come.”

“I want to congratulate the team at Belk for its impressive transformation from a traditional department store business into a full omni retailer,” adds Stefan Kaluzny, Managing Director of Sycamore Partners. “The company has tripled its web business and currently fulfills over 70% of its web orders from its stores, providing a nimble and scalable platform for expansion. It has been a remarkable undertaking in a very challenging macro environment.”

DETAIL:

• Belk successfully completed a prepackaged, one-day financial restructuring with the backing of majority owner Sycamore Partners and lenders including KKR Credit and Blackstone Credit.
• Belk’s plan of reorganization received nearly unanimous support from its existing lenders and provides for suppliers and landlords to be paid in full as normal operations continue at all store locations and on Belk’s e-commerce platform.
• The restructuring provides $225 million of new capital while significantly reducing its debt by approximately $450 million and extended maturities on all term loans to July 2025.
• Belk is growing its merchandise assortments in popular areas like home, wellness, and outdoor, and plans to continue diversifying its inventory to fit the evolving lifestyle of its customers, all while strengthening its $1 billion+ and growing e-commerce segment.
• Kirkland & Ellis LLP has served as legal advisor, Lazard has served as financial advisor, and Alvarez & Marsal North America, LLC, has served as restructuring advisor to Belk. Latham & Watkins LLP has served as legal advisor to Sycamore Partners. Willkie Farr & Gallagher LLP has served as legal advisor and PJT Partners LP has served as financial advisor to the Ad Hoc Crossover Lender Group and O’Melveny & Myers LLP has served as legal advisor and Evercore has served as financial advisor to the Ad Hoc First Lien Lender Group comprised of certain of Belk’s existing first lien term lenders.