Skip to main content

Nordstrom not going private

Nordstrom will remain in the public arena.

The special committee of Nordstrom’s board of directors said has ended talks with Nordstrom family members about taking the company private after the two sides were not able to agree on an acceptable price.

The effort by the Nordstrom family group – composed of company co-presidents Blake W. Nordstrom, Peter E. Nordstrom, and Erik B. Nordstrom, president of Stores James F. Nordstrom, chairman Emeritus Bruce A. Nordstrom, and Anne E. Gittinger – to acquire the company started last year.

Earlier this month, the special committee received and rejected an initial offer of $50 a share, calling the proposed price “inadequate.”

In its statement announcing the termination of talks, the special committee said it believed that Nordstrom is “uniquely positioned in the industry and has generated market share gains and industry leading e-commerce penetration fueled by investments in digital capabilities to expand customer reach and engagement.”

“The Special Committee is confident that the company’s ability to leverage its digital capabilities and its local market assets of people, product, and place will support growth across both its full-price and off-price businesses,” the statement said.

The decision by the special committee to end discussions with the family about taking the retailer private comes amid increased caution by lenders to make big investments in retail acquisitions, which often result in the acquired companies being saddled with a heavy debt load.
This ad will auto-close in 10 seconds