BANKRUPT. OFFICIAL.

Department store chain Belk files for Chapter 11 bankruptcy, private equity firm Sycamore to take control
PUBLISHED TUE, JAN 26 20213:08 PM EST

There is a long press release on the web.

Said several days ago, the only winner in this is Sycko. Everyone and all else will be fed upon by the carions owed money.

Can Belk continue? Sure. It can stagger along like a drunken ol sot. However, like a sot, not a pretty sight nor nice to be around.

Yes, this has been in the works for some time. Yes some stores will close and another round of staff restructuring will take place with lost jobs.

For whom the bell tolls. Who will shed tears, while others laugh. And so it goes....be well.

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More debt was not necessarily a death sentence, although debt-laden retailers do go bankrupt regularly. Belk’s new management team led by Harper, its first female CEO, just needed to execute exceptionally well. Industry observers say that didn’t happen.

As other department stores created a robust “omni-channel” offering, where in-store shopping and online shopping are integrated, Belk lagged behind. Same-store sales at Belk have steadily dropped since 2016, according to Moody’s.

On top of that, Sycamore paid itself a healthy dividend that S&P analysts said took a lot of cash flow out of the business that could’ve been used to build up online capabilities. That further handicapped Belk’s odds.

So, when the pandemic hit in early 2020, the business wasn’t necessarily a world-beater. And while online shopping penetration did tick up during the pandemic, Belk still struggled.
Charlotte Observer

So.. good news so far. When are they closing stores?

Thread regarding Belk layoffs

BANKRUPT. OFFICIAL.

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