- Kristopher Fraser |
Nordstrom, Inc. announced today that members of the Nordstrom family, including 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, have formed a group, simply called the "Group," to explore the possibility of going private. This would involve a 100 percent acquisition by the Group of the outstanding shares of common stock of the company. The Group has not made a proposal to the company regarding any such transaction.
The company's board of directors has formed a special committee, simply called the "Special Committee," comprised of the independent directors to act on behalf of the company in connection with such exploration by the Nordstrom family and any possible transaction. The Special Committee has retained Centerview Partners LLC to serve as its financial advisor and Sidley Austin LLP to serve as its legal counsel.
Nordstrom family might acquire 100 percent of outstanding shares in Nordstrom
No assurances can be given regarding the terms and details of any transaction, that any proposal will be made by the Group, that any proposal made by the Group regarding a proposed transaction will be accepted by the Special Committee, that definitive documentation relating to any such transaction will be executed, or that a transaction will be consummated in accordance with that documentation, if at all.
For high-end department stores like Nordstrom, staying private seems to be the better option. Recent competitor Neiman Marcus dropped their bid for an IPO amid declining sales. Department stores are struggling to keep in a landscape dominated by Amazon.
Last year, Nordstrom started off the year with poor sales, but closed on a record sales year. However, they already projected that 2017 would be a tough year for them. Given the current retail landscape, Nordstrom is no better off than its competitors and specialty stores.
Expansion is still a key component for Nordstrom, and more focus will be given towards Nordstrom Rack, which is very popular among millennials. Once it is confirmed whether or not Nordstrom will go private, future plans for the company will be further analyzed.photo: via Nordstrom Facebook page