Belk department store chain filing for bankruptcy

Belk, a North Carolina-based department store chain with almost 300 branches in the southeast, will file for bankruptcy after more than 130 years, the latest big box store crumbling under the COVID-19 pandemic.

Private equity firm Sycamore Partners, which bought the family-owned franchise for $3 billion in 2015, announced Tuesday that it will file for Chapter 11 bankruptcy, but will “continue normal operations” during the process.

“Belk has a 130-year legacy of providing quality products at great prices. Like all retailers navigating COVID-19, our priority has been the safety of our associates, customers and communities,” CEO Lisa Harper said in a statement.

“As the ongoing effects of the pandemic have continued, we’ve been assessing potential options to protect our future. 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.”

Belk has more than 20,000 employees, but instituted large-scale furloughs in March when the pandemic hit and stores were temporarily shut down. Layoffs hit the corporate offices in Charlotte in July.

In November, Bloomberg reported that Belk was months overdue in paying some suppliers.

Dozens of major companies declared bankruptcy since the pandemic began, including J.C. Penney, Neiman Marcus, Brooks Brothers and Pier 1.