Department Store Retailer Belk Completes Financial Restructuring

Belk has finished its financial restructuring, working out an accelerated pre-packaged single-day reorganization. The department store retailer’s plan of reorganization garnered near-full support from its current lenders, according to an announcement. The plan allows for vendors and landlords to receive full payment amid normal ongoing operations at brick-and-mortar stores and its online shopping platform.

Belk has obtained $225 million of new capital, decreased its debt by roughly $450 million and lengthened maturities on all term loans to July 2025, according to the announcement.

“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,” Belk CEO Lisa Harper said in the announcement. “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.”

The retailer said the capital and decrease in debt give it more liquidity to focus on important growth projects. Those include additional improvements to its omnichannel functions and the growth of product selections in new areas, such as outdoor, wellness and home.

Belk said in the announcement that it “plans to continue diversifying its inventory to fit the evolving lifestyle of its customers, all while strengthening its $1 billion+ and growing eCommerce segment.” The company currently serves shoppers at approximately 300 Belk retail locations in 16 states, as well as its website and mobile app.

The news comes as sales at U.S. department stores grew in January. The 1.5 percent year-on-year increase posted collectively by the country’s big retail chain stores was the first time since 2019 that the hard-hit and diminished segment has seen such a positive result. Belk had previously filed for Chapter 11 bankruptcy at the beginning of the year.