This iconic department store depends on bankruptcy
This is the last retail victim of the pandemic.
While the Pandemic of Covid-19 continues to withdraw its number of people on the economy, another famous name went to Mur-Belk, theIconic chain of the South Grand Store, depends on chapter 11 of the protection against bankruptcy. As the largest private store in the country, Belk currently serves 16 states in 300 stores, but now, its future is in question.
Over the past year, similar chains of department stores including Neiman Marcus,JcpenneyAnd Lord & Taylor have all deposited for bankruptcy, sign of how difficult conditions have been. For the history of Belk's problems and what it means for the brand, read it. And for another store that disappears sadly, checkThis beloved store closes all its American pitches.
Belk was a southern luminaire for 130 years.
Belk was founded in 1888 byWilliam Henry Belk Using an investment of $ 750 and a $ 500 loan to open its first store in Monroe, North Carolina. It was originally called New York racket, but once Belk brought his brother into the company, they started to negotiate under the surname. In 1943, the name Belk was on the 195 stores in the south. And for another department store that suffers, checkThis popular department store closes all its locations.
Belk is no longer a family affair.
Three generations of the Belk family owned the chain of department store until 2015. At this point,Tim, McKay and John R. Belk Sold the company for $ 3 billion in Sycamore Partners, a New York private equity company. A period of renewal followed with the hiring of the companyLisa Harper As the first female director (and non-Belk) and investing $ 70 million over two years, starting in 2017, to refresh existing stores and open new people to use younger customers. And for more detail news sent directly to your inbox,Sign up for our daily newsletter.
Belk has acquired debt, just like shopping centers have fallen from favor.
However, the sale also charged Belk with more than $ 2 billion in debt as department stores andShopping centers started to fall out of service with a growing number of online sales. Belk has also started fighting to argue that more than 20,000 employees spread in 300 stores in 16 states, with 1,300 additional people in Charlotte's headquarters in North Carolina.
With the epidemic of the Pandemic of Covid-19, employees have been massely congulted, while the elderly members of the team had the reduction of their pay for up to 50%. Eighty business roles had already been eliminated on February 20, 2010, with more job losses after July. According to a report of July 2020 in thePost of New York, Sycamore's partners initiallyplanned to merge Belk with JCPENENY, whodeposited for bankruptcy in May. These plans have apparently fallen through and from October,Strongmentioned that manyBelk's sellers said they were not paid In a timely manner, if at all. And for another who suffers, checkThis popular clothing store closes at least 200 locations.
Belk will pursue "normal operations" throughout its restructuring.
Sycamore Partners announced in a press release on January 26th that he had concluded a restructuring support agreement (RSA) with Belk who will see the storeFile of Chapter 11 Bankruptcy. The Declaration pointed out that Belk will pursue "normal operations" through the process, with Sycamore expecting that Belk leaves bankruptcy at the end of February.
TheObserver Charlotte reports that this willHangar Belk about $ 450 million in debt and avoid new job losses or store closures. "We are convinced that this agreement puts us on the right track to significantly reduce our debt and to provide us with greater financial flexibility to meet our obligations and continue to invest in our company", Harper,CEO of Belk, says in a declaration viaUnited States today. And for more businesses in the same place, checkThis beloved brand has just filed a bankruptcy.
