Will bankruptcy save Belk? Analysts weigh in

CHARLOTTE — Belk Inc. entered — and exited— Chapter 11 bankruptcy protection in less than 24 hours this week.

It was a whirlwind turnaround, expedited by a reorganization plan that was pre-approved by the majority of the company’s debt holders.

That filing erased $450 million in debt and infused $225 million in new capital into the business; the longtime Charlotte retailer say it has no plans to close any of its 291 stores.

Belk issued a statement Wednesday, stating that bankruptcy provided the company with increased liquidity to focus on key initiatives for growth.

But those steps might not be enough, says Steve Cox, a professor in Queens University’s McColl School of Business.

Read more here to see what multiple industry observers think about the Charlotte retailer’s prospects.

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