Belk to Cut $450 Million of Debt With Record-Breaking Speed

  • Company plans to exit bankruptcy a day after filing petition
  • Department store chain had restructuring plan in place
A Belk store in Alabama in March 2020.Photographer: Michael Wade/con Sportswire/AP Images
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Belk Inc., the department store chain owned by Sycamore Partners, won court approval of its plan to slash $450 million of debt less than one day after filing for Chapter 11 bankruptcy.

U.S. Bankruptcy Judge Marvin Isgur said in a hearing Wednesday he would approve the retailer’s bankruptcy plan, paving the way for Belk to emerge from Chapter 11. If the Charlotte, North Carolina-based company exits court protection this afternoon as planned, the case would be the fastest ever pre-packaged bankruptcy, Matthew Fagen of law firm Kirkland & Ellis said on behalf of the company.