Judge approves Chapter 11 bankruptcy plan for Belk chain

Business

FILE- Belk Department Store opened for Black Friday sales and shopping prizes at midnight, Friday, Nov. 23, 2012 in New Bern, N.C. (AP Photo/New Bern Sun Journal, Bill Hand)

CHARLOTTE, N.C. (AP) — A judge has approved Chapter 11 bankruptcy plans for North Carolina-based department store chain Belk, creating a new infusion of capital and cutting its debt load.

The Charlotte Observer reports the judge approved the plan Wednesday.

The move provides the ailing department store chain financial breathing room as it grapples with the continuing effects of the COVID-19 pandemic.

Chief Financial Officer William Langley said in a filing accompanying the bankruptcy that the pandemic directly resulted in drastic declines in sales, revenue and liquidity.

Belk furloughed workers in March as the pandemic hit and cut senior staff pay up to 50% as stores temporarily closed.

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