Belk Department Store Chain Said to Plan Bankruptcy to Tame Debt
Belk department store. Getty.
Sycamore’s Belk Inc. is nearing a deal to file for bankruptcy with plans to hand an ownership stake to lenders, according to people with knowledge of the matter.
The deal would take the department store chain through a pre-arranged restructuring of its debt, said the people, who asked not to be identified discussing the private talks. The terms aren’t final and could still change.
A representative for Belk and Sycamore Partners declined to comment.
The company has been working with Kirkland & Ellis and Lazard Ltd., Bloomberg earlier reported, while Willkie Farr & Gallagher and PJT Partners Inc. are advising a so-called crossholder group that includes large second-lien loan holders along with first-lien lenders and is led by Blackstone Credit.
