The Sycamore Partners-owned department store chain is negotiating with creditors KKR and Blackstone, trying to avoid following peers Sears, JCPenney and Stage Stores into bankruptcy, the Wall Street Journal reported. The discussions revolve around converting some of Belk’s $2.6 billion in debt into equity, while allowing Sycamore to retain an equity stake, according to sources close to the matter. Reportedly, KKR is reluctant to force a Chapter 11 filing, given the high costs and difficulty other large retailers have had exiting bankruptcy.
Charlotte, NC-based Belk operates about 300 ... Log in to view full article.