DISTRESSED DAILY: Belk Struggles Anew Two Years After Bankruptcy

Belk Inc.’s profitability and sales have weakened, setting up the department chain for a potential new restructuring, according to S&P Global Ratings.

The Charlotte, North Carolina-based chain, which filed for and emerged from bankruptcy in 2021 after the pandemic added to the company’s stress, hasn’t been successful in turning around its operations, analysts led by Lauren Slade wrote in a note. Belk’s operating performance has deteriorated compared to a year earlier, as higher markdowns and “significant” cash burn offset improved sales for the quarter that ended Oct. 29.

Lower consumer demand and a mild recession are likely to ...