(Reuters) -Nordstrom said the founding family behind the department store chain had shown an interest in exploring a go-private deal, and the company’s board had formed a special committee of independent directors to look into it.
The move by CEO Erik Nordstrom and President Pete Nordstrom comes at a time when department store chains across the U.S. are grappling with weak sales as sticky inflation and elevated borrowing costs prompt customers to rethink their discretionary spending.
The Seattle-based retailer said the committee would evaluate any proposal from the founding family as well as other parties.
Nordstrom’s shares were up about 2% in after hours trading.
Reuters had first reported in March, citing sources, that the founding family was looking to take the company private, six years after a similar attempt turned out to be unsuccessful.
In 2017, the company announced that the members of the family had formed a group to explore the possibilities of going private, including the acquisition of all outstanding shares of the company.
But the department store operator in 2018 rejected that bid worth $8.4 billion, saying it was low. It later ended discussions with the family, which had also found it difficult to arrange for debt financing after failing to agree on an acceptable price.
The founding family currently owns about 30% of the company’s outstanding shares, as of March 2024.
Rival Macy’s has also received several offers in recent months from its investors Arkhouse Management and Brigade Capital to be taken private, while Kohl’s has also come under pressure as an activist hedge fund chaired by former Canadian Prime Minister Stephen Harper was pushing the U.S. retailer to sell itself.
(Reporting by Granth Vanaik in Bengaluru; Editing by Shailesh Kuber)
Comments