Belk agrees to sell the company for $3 billion to Sycamore Partners

Belk has agreed to be purchased by New York-based private equity firm Sycamore Partners for $3 billion.

The deal effectively ends local control of the 127-year-old company that began in downtown Monroe and grew into the largest family-owned department store chain in the country.

What remains to be seen is what will happen to the 1,300 employees at Belk’s corporate offices on Tyvola Road. The company said its headquarters will remain in Charlotte. It’s unclear whether any Belk stores will have to close as a result of the deal.

The news caps off months of uncertainty that began in April when Belk said it had hired investment bank Goldman Sachs to help it explore alternatives to its current plans, indicating a possible sale. The Observer reported last month that Sycamore Partners was preparing to make an offer to buy the department store chain.

“We are delighted to have found a financial partner that sees what we see in Belk: a 127-year-old brand that remains relevant today with exceptional customer loyalty in small, medium and large cities throughout the South,” Belk Chief Executive Officer Tim Belk said in a statement.

Now one of the Charlotte area’s biggest employers, Belk was founded in Monroe in 1888 by William Henry Belk, who named his first store New York Racket. Over the years, the chain has expanded to 296 stores across 16 states, mostly in the Southeast.

Belk is controlled by a third generation of Belk family members, including Chief Executive Officer Tim Belk and his brother and Chief Operating Officer John Belk.

This is a breaking news story and will be updated.

This story was originally published August 24, 2015 at 9:30 AM with the headline "Belk agrees to sell the company for $3 billion to Sycamore Partners."