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Nordstorm temporarily suspends plan to go private

RBR Staff Writer Published 18 October 2017

US retailer Nordstorm has temporarily suspended plans to take the company private amid changing retail environment.

The company suspended active exploration, for the balance of the year, of the possibility of proposing a transaction to take the company private.

In June this year, Members of the Nordstorm family including the 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 70% of the company’s stock that they do not own.

There were recent reports suggesting that the company was discussing options with private equity firms to supply it with the required funding.

Los Angeles Times stated that going private could give the stakeholders much flexibility to invest in an ever-changing retail environment.

Sales in the company have been falling, resulting in financial pressure, in the recent times. One of the main reasons attributed to it is the general disruption caused by online shopping.

Nordstorm has also been trying to get back by offering customers with online options and to pick up online orders the same day. It had recently opened a new store in Los Angeles, where there are only personal stylists who can order merchandise for customers.

New York Post stated that the company tried to raise $10bn in a short period of time, resulting in suspending its plans to make itself private.

The Nordstorm family holds 31% of the stake in the company which is valued at $2.bn as of this August. Leonard Green & Partners was ready to provide $1bn in equity, but has now dropped its plans, until the holiday season is over.

Image: Nordstorm drops idea to go private. Photo: Courtesy of Nordstrom, Inc.