Nordstrom’s founding family is seriously considering going private (again) and it has formed a special committee to evaluate any bids.
CEO Erik Nordstrom and President Pete Nordstrom notified the retailer’s board of their interest in going private during a recent evaluation, which looked to find avenues for the company “enhance shareholder value,” Nordstrom said in a statement Thursday. As a result, the board formed a special committee that is made up of independent directors. The committee will be responsible for evaluating buyout proposals from Erik and Pete Nordstrom, as well as any proposals from other parties. And the board will consider whether the bids “are in the best interests of Nordstrom and all shareholders,” the company said.
Nordstrom said it’s not definite that it will pursue any particular deal or that one will be approved. It added that it does not plan to disclose any developments on the matter unless it deems it “appropriate or necessary.”
Nordstrom stock was up slightly in Friday afternoon trading.
Reuters reported last month that Nordstrom’s founding family was working with investment banking firms Morgan Stanley and Centerview Partners as it explored the possibility of taking the company private.
And this isn’t the first time Nordstrom has tried going private.
In 2018, the company also gave it a go after it had formed a special committee in 2017. That deal, however, was rejected after the company deemed the bid too low.
Nordstrom’s efforts come at a time when its business continues to straddle lines of consumer interest. In March of this year, the company predicted its sales for the 2024 fiscal year would continue to decline. That’s despite sales for its discount subsidiary, Nordstrom Rack, surging by 14.6%.
More Nordstrom news
Nordstrom stock surged 10% because the retailer might go private
Nordstrom’s future could lay in its discount Rack store brand