Belk Successfully Completes Pre-Packaged, One-Day Financial Restructuring with Backing of Majority Owner Sycamore Partners and Lenders Including KKR Credit and Blackstone Credit

Nearly unanimous support for consensual plan of reorganization allows suppliers to be paid in full, has no impact to employees and all store locations to remain open

Restructuring eliminates $450 million of debt and provides $225 million in new capital for growth initiatives, including further enhancement to its omnichannel capabilities and the expansion of its merchandise offerings

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Belk, Inc.

Feb 24, 2021, 15:48 ET

CHARLOTTE, N.C., Feb. 24, 2021 /PRNewswire/ -- Belk today announced that it has successfully completed its financial restructuring, finalizing an expedited pre-packaged, one-day reorganization, and emerged well-positioned for long-term growth. 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.

"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."

As a result of the restructuring, Belk has received $225 million of new capital, significantly reduced its debt by approximately $450 million and extended maturities on all term loans to July 2025.

"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."

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 omnichannel capabilities and the expansion of merchandise offerings into new, relevant product categories. 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 adviser, Lazard has served as financial adviser, and Alvarez & Marsal North America, LLC has served as restructuring adviser to Belk. Latham & Watkins LLP has served as legal adviser to Sycamore Partners. Willkie Farr & Gallagher LLP has served as legal adviser and PJT Partners LP has served as financial adviser to the Ad Hoc Crossover Lender Group and O'Melveny & Myers LLP has served as legal adviser and Evercore has served as financial adviser to the Ad Hoc First Lien Lender Group comprised of certain of Belk's existing first lien term lenders.

About Belk

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. For over 130 years, Belk has proudly put customers and community at the center of what they do, supporting local charities, organizations and families when they need it most.

For more information visit https://newsroom.belk.com/

To shop, find your local store at www.belk.com/stores, visit belk.com or download the Belk app in Google Play or Apple Store.

About Sycamore Partners
Sycamore Partners is a private equity firm based in New York. The firm specializes in consumer, distribution and retail-related investments and partners with management teams to improve the operating profitability and strategic value of their business. With approximately $10 billion in aggregate committed capital raised since its inception in 2011, Sycamore Partners' investors include leading endowments, financial institutions, family offices, pension plans and sovereign wealth funds. For more information on Sycamore Partners, visit www.sycamorepartners.com.

SOURCE Belk, Inc.