Skip to main content

Nordstrom family confirms interest in going private

As April 29, Nordstrom had a total of 347 stores.
Nordstrom ended its most recent fiscal year with a total of 359 stores.

The founding family of Nordstrom Inc. is once again interested in taking the 123-year-old department store company private.

Nordstrom Inc. has formed a special committee of independent directors and disinterested directors to explore the retailer going private. In a statement, the company said its board formed the committee after Erik and Pete Nordstrom, the retailer's CEO and president, respectively, notified the board of their interest in pursuing a deal that that would take Nordstrom private. 

This is the second attempt by the Nordstrom family to take the company private.  In 2018, the company rejected a bid from the family offering to pay $50 a share, or about $8.4 billion, deeming it “inadequate."  The proposal was nixed by a special committee of the board.

Erik Nordstrom owns 7.45% of the company’s outstanding shares, and Pete Nordstrom, owns 7.41%. The entire Nordstrom family combined owns about 30% of the company's outstanding shares, as of March 2024. According to a filing, the brothers might seek debt or equity financing to go private.

The special committee will evaluate proposals from the two Nordstrom brothers and any others from outside parties and consider “whether they are in the best interests of Nordstrom and all shareholders.” The company noted that that is no guarantee that deal will happen or be approved.

In its statement, Nordstrom said its board is committed to enhancing shareholder value and regularly evaluates “a wide range of strategic, financial and operational alternatives as the company continues to execute its strategic plan.

In March, Nordstrom reported a better-than-expected fourth quarter, helped by rising sales at its off-price Nordstrom Rack banner, called “the growth engine” of the company. Although the retailer beat sales expectations, it warned of a potential revenue decline in its current fiscal year, which has one less sales week. 

Nordstrom ended its most recent fiscal year with a total of 359 stores, including 258 Rack stores, 93 full-price stores, two Last Chance clearance outlets and six Nordstrom Local locations.

X
This ad will auto-close in 10 seconds