Belk’s Financial Restructuring

Kirkland & Ellis LLP served as legal adviser to Belk. Latham & Watkins LLP served as legal adviser to Sycamore Partners. Willkie Farr & Gallagher LLP served as legal adviser to the Ad Hoc Crossover Lender Group and O’Melveny & Myers LLP served as legal adviser to the Ad Hoc First Lien Lender Group comprised of certain of Belk’s existing first lien term lenders.

Belk has successfully completed its financial restructuring, finalizing an expedited pre-packaged, one-day reorganization, and emerged well-positioned for long-term growth. Belk’s plan of reorganization received nearly unanimous support from its existing lenders and provides for suppliers and landlords to be paid in full as normal operations continue at all store locations and on Belk’s e-commerce platform.

As a result of the restructuring, Belk has received $225 million of new capital, significantly reduced its debt by approximately $450 million and extended maturities on all term loans to July 2025. Through the restructuring, the company was able to preserve approximately 17,000 jobs, substantially deleverage its capital structure, and emerge with increased liquidity to support growth and long-term success.

Charlotte-based Belk, Inc., a privately-owned department store, opened its first store in 1888, beginning a legacy of selling great products at great prices, treating customers like family and giving back to the community. Today, Belk serves customers at nearly 300 Belk stores in 16 Southeastern states, at belk.com and through the mobile app. For over 130 years, Belk has proudly put customers and community at the center of what they do, supporting local charities, organizations and families when they need it most.

Latham & Watkins LLP represented Sycamore Partners, as sponsor and the majority owner, in the process, with a restructuring team led by partners George Davis (Picture) and Ted Dillman, with counsel Ebba Gebisa and associate Misha Ross; a corporate team led by partners Michael Benjamin, Jason Silvera, and David Zaheer, with associate Eric Sternlieb; a banking team led by partner Joshua Tinkelman, with associates Lena Dunn and James Sullivan; and a litigation team led by partners Eric Leon and Amy Quartarolo.

Involved fees earner: Michael Benjamin – Latham & Watkins; George Davis – Latham & Watkins; Ted Dillman – Latham & Watkins; Lena Dunn – Latham & Watkins; Ebba Gebisa – Latham & Watkins; Eric Leon – Latham & Watkins; Amy Quartarolo – Latham & Watkins; Jason Silvera – Latham & Watkins; Eric Sternlieb – Latham & Watkins; James Sullivan – Latham & Watkins; Joshua Tinkelman – Latham & Watkins; David Zaheer – Latham & Watkins;

Law Firms: Latham & Watkins;

Clients: Sycamore Partners;

Author: Martina Bellini