What: without speedy approval, the retailer would have faced liquidation

Why is it important: the reorganising plan eliminates USD 450 million in debt and keeps the 291 stores open

Belk entered Chapter 11 with USD 1.9 billion in funded debt, a heavy burden for a retailer struggling in a "challenging commercial environment" even before the pandemic, according to Belk CFO William Langley.

Amid the lockdown orders and the depressed shopping at stores that followed reopening, Belk's sales fell 32% year over year in the months between March and December last year. Liquidity in April 2020 was down 70%.

Langley said the plan, which leaves Sycamore as the majority owner of Belk, had support from lenders representing nearly all of its term loan claims and would pay unsecured claims. The CFO touted the plan as a way to keep its stores open and 17 000 jobs in place.

The department store said it has USD 225 million in new capital and extended maturities to 2025.

Belk files for bankruptcy, eyes lightning-fast exit 

Belk exits bankruptcy