Department store chain Belk Inc. filed for bankruptcy protection on Tuesday, commencing an ultra-quick timetable intended to lift the Sycamore Partners-owned company out of chapter 11 within around 24 hours, the Wall Street Journal reported. Belk is scheduled to appear today in the U.S. Bankruptcy Court in Houston to seek confirmation of a restructuring strategy that creditors have already voted unanimously to support. The chapter 11 proposal, announced last month, would trim $450 million in debt from the company’s balance sheet and provide a $225 million capital infusion, supplied by Belk lenders and its private-equity owner Sycamore. The planned restructuring will keep Belk majority owned by Sycamore, a retail specialist that has controlled the company since 2015. With nearly 300 stores, mostly in the Southeast, Belk generated $3.8 billion in revenue in the 12 months ended November, according to Moody’s Investors Service. As of last month, the company was carrying $1.9 billion in debt. Since 2019, three other sizable companies — retailer FullBeauty Brands Inc., information-technology provider Sungard Availability Services and oil-and-gas company Sheridan Holding Co. I LLC — have filed for bankruptcy and secured court approval of their restructurings by the next day, cutting down on administrative fees from longer stays in chapter 11.
