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Belk Targets 24-Hour Bankruptcy With Lenders on Board

  • Lenders get a 49.9% company stake, debt cut by $450 million
  • Parent Sycamore to lend up to $100 million of new capital
Belk store
Photographer: John Greim/LightRocket/Getty Images
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Belk Inc., the department store chain owned by Sycamore Partners, will seek to complete an upcoming reorganization in bankruptcy court in a single day, according to people with knowledge of the plans.

The retailer will file its Chapter 11 petition in the Southern District of Texas in late February, said the people, who asked not to be identified because discussions are private. Belk on Tuesday disclosed its plans to cut debt and raise new capital to continue operating, and the people said it aims to wrap up the court process by the next day.