A Nordstrom store location sign inside a mall in Chicago, Illinois, on March 20, 2024.
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this Nordstrom The family announced Thursday that it is again considering taking the department store private and has formed a special committee to evaluate bids.
Nordstrom said in a statement that Chief Executive Erik Nordstrom and President Pete Nordstrom recently told the company’s board of directors that they were interested in taking the 123-year-old department store privately. Press Releases.
Accordingly, the Board of Directors has established a special committee composed of independent and disinterested directors that will evaluate the proposals from the Nordstrom brothers and any other outside parties.
The company said Nordstrom’s board of directors is “committed to enhancing shareholder value” and the committee will determine whether any potential acquisition is in the best interests of the company and its owners.
The department store warned there was no guarantee the deal would happen or be approved.
Private equity firm Leonard Green & Partners came close to taking the company private in 2017, but the deal fell through.
At the time, management hoped that going private would allow it to make the investments needed to help it adapt to the changing retail landscape without the constant scrutiny that comes with being a public company.
The news comes as department stores face an uncertain future and grapple with falling sales. Many brands that have long relied on department stores to boost revenue are now focusing on their own stores and websites and are less interested in working with wholesalers.
Nordstrom’s interest in privatization was first Reuters last month. The stock rose about 2% in after-hours trading after the news was announced and has gained about 1.5% so far this year as of Thursday’s close.
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