Private equity firm Sycamore Partners has agreed to purchase Belk for $3 billion, including the company's debt.
The deal ends the 127-year old reign of the family-owned department store chain, The Charlotte Observer reported. The headquarters will remain in Charlotte, North Carolina, and Tim Belk will still serve as CEO. At this time, no jobs are expected to be cut and no stores will be closed.
"We plan to grow Belk by executing our current strategic initiatives and undertaking new growth initiatives together with Sycamore. This transaction is an across-the-board win for our stakeholders," Belk said in a statement.
The deal is subject to regulatory approval and is expected to close in the fourth quarter.
Back in April, Belk hired Goldman Sachs to help explore alternatives, indicating a possible sale.
Belk has faced challenges as more consumers shift to online shopping. The company recently invested $150 million to overhaul its website, hire more IT workers, and improve online offerings, including bringing CIO Scott Kessler on board earlier this year.
Sycamore Partners recently made headlines for agreeing to purchase 330 Family Dollar stores. The discount retailer had agreed to rebanner a handful of Family Dollar (NYSE:FDO) stores upon completion of the acquisition by Dollar Tree (NASDAQ:DLTR) for $8.5 billion. Sycamore Partners plans to operate the 330 stores under the Dollar Express banner.
-See this article in The Charlotte Observer
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