Department store Belk is set to file for Chapter 11 bankruptcy after thriving since 1888.
Filing for Chapter 11 bankruptcy will give the company the opportunity to shave off about $450 million, recapitalize the business and extend its maturities on all term loans until July 2025, according to a press release from the company.
“Belk plans to continue normal operations throughout its financial restructuring process,” the company said in the press release. “Customers will continue to receive the quality merchandise and service they expect when shopping at Belk’s stores across the Southeast and online.”
Lisa Harper, Belk CEO, said the retail company has navigated COVID-19 with its focus on associates’, customers’ and communities’ safety.
“As the ongoing effects of the pandemic have continued, we’ve been assessing potential options to protect our future,” Harer said in the press release. “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.”
The company is expected to continue operating normally while it goes through the bankruptcy process, according to the release.