Sycamore’s Belk Cedes Control to Lenders, Raises $485 Million

Belk Inc. raised nearly $500 million and slashed its debt load in a deal that sees longtime backer Sycamore Partners cede control of the struggling department-store chain to lenders.

The Charlotte, North Carolina-based retailer cut its debt by almost $1 billion, delayed the repayment date of its asset-based credit line to 2029 and raised fresh money, in part by pledging revenue streams from its loyalty credit card program to lenders, according to a statement.

The restructuring preserves thousands of jobs at its nearly 300 stores across the Southeastern US. The new money and Belk’s slimmed-down balance sheet positions the ...