On February 6, 2023, The S&P has downgraded Belk’s credit rating, for a second time, to CCC-, stating the company has weak sales, a growing and unsustainable debt of almost $2 billion, weak Omni channel sales, and an unsustainable monthly cash burn. S&P predicts belk will face restructuring in the next year or possibly a full liquidation. This has been predicted before, but Belk’s debt is considerably higher than in the past. Any employee reading this please start looking elsewhere for a new job if needed, this is not good news for Belk.
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- and this is new news?? Lol
agreed its the same thing if I recall again there was a ABC/CBC new report about a lady who lost her job a toys r us then she moved to belks thinking they were still family owned and no they no longer are that's a shame too but the whole story was about corporates robbing of public hedge funds fueling declines in the middle class companies I think it must have been around 2017 when there was that huge push of higher pay thing might be on YouTube
Bottom line is the executives at belk are bleeding the company dry. Just like Sears, bed bath & beyond, Stein Mart, Kmart, and Toys r us. and we have to sit back and watch it happen.
bonus note. it also mentioned that Belk was required to have a minimum of $40 million cash to maintain its debt interest plan so there's a base line to work off that so maybe this time Belk wont just have 6 million in its bankruptcy proceeding but who knows as times goes by its just a shady business in water
from the article Belk also had over $500 million of borrowings under the $900 million asset-based lending revolving credit facility due August 2024, which reflects peak seasonal borrowings. The facility will go current this summer absent an extension. We also view liquidity as constrained by Belk’s very large debt burden totaling $1.9 billion as of the third quarter (including PIK amounts on its term loans over the past couple of years).
so what I read is that taking in the retail landscape of the dept. store field like macys having declines in sales and profitability due to price reductions and operation cost they estimate that Belk has similar operations and so the loans that Belk had made are about to go up in their interest which will lead to having less cash on hand to pay up on the interest fees and as time pushes Belk will have fewer moves to make on its operation structure it also stated that Belk may have accelerated the decline of their cash on hand by retail/economic conditions over the past year so if I recall Belk had $240 million in cash liquidity after the 2021 bankruptcy so lets say almost two years after the restructuring half that amount may still be on hand so around $120 million / $90 million I don't know this or the correct amount but I chose this simply because of it being a round number that a business might have and this is being generous
A huge, oversized, gigantic, couldn’t be more obvious red flag.