2021, expectedly, seems to have started from where 2020 left!
Sycamore Partners has, reportedly, confirmed that American apparel retailer Belk is all set to file for Chapter 11 bankruptcy.
The fashion retailer has entered into a restructuring support agreement with Sycamore Partners in its efforts to revamp.
Notably, Sycamore Partners holds over 75 per cent of Belk’s first lien term loan debt and all of its second lien term loan debt.
The agreement is expected to help Belk bring down its debt by around US $ 450 million and extend maturities on all term loans by July 2025. This was confirmed in a statement released by Sycamore Partners.
Meanwhile, Sycamore Partners – along with investment firms Blackstone Credit, KKR and some others – has committed US $ 225 million in new capital.
Once the agreement process concludes in February, many lenders will have minority stake in Belk, with Sycamore Partners having majority stake.
Sycamore Partners, which bought Belk in 2015, refused to comment. Stay connected with us to learn more about the development.
Founded in 1888, Belk is known mainly for its apparels, accessories and shoes, and has around 300 stores in 16 US states.
