Sycamore’s Belk Cedes Control to Lenders, Raises $485 Million
- Deal saves thousands of jobs at department-store chain
- Company was among retailers that went bankrupt amid pandemic
This article is for subscribers only.
Belk Inc. raised nearly $500 million and slashed its debt load in a deal that sees longtime backer Sycamore Partners cede control of the struggling department-store chain to lenders.
The Charlotte, North Carolina-based retailer cut its debt by almost $1 billion, delayed the repayment date of its asset-based credit line to 2029 and raised fresh money, in part by pledging revenue streams from its loyalty credit card program to lenders, according to a statement.