Belk Inc., the department store chain owned by Sycamore Partners, will seek to complete an upcoming reorganization in bankruptcy court in a single day, Bloomberg News reported. The retailer will file its chapter 11 petition in the Southern District of Texas in late February. Belk on Tuesday disclosed its plans to cut debt and raise new capital to continue operating, and it aims to wrap up the court process by the next day. The urgency stems from concern over business interruptions during the bankruptcy process, which can spook vendors and customers. The quick turnaround should benefit from Belk’s work in recent weeks to get lenders on board with its restructuring plan before it filed. Equity Stake The company’s plans are subject to factors including judicial discretion, and elements could change. A 24-hour turnaround in court would put Belk in rare company, alongside recent record-breakers like online retailer Fullbeauty Brands Inc. and technology company Sungard Availability in 2019. The restructuring plan involves handing 49.9% of the company’s equity to its lenders, with parent Sycamore retaining a 50.1% stake in exchange for supplying up to $100 million of a new $225 million loan to the company.
