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REUTERS/Rick Wilking/File Photo/File Photo The Nordstrom store is pictured in Broomfield, Colorado, February 23, 2017.
The Washington Post / Shannon Najmabadi
15:10 JST, December 24, 2024
Members of the Nordstrom family are taking its namesake department store chain private with Mexican retailer El Puerto de Liverpool, in a deal announced Monday that values the company at $6.25 billion.
The deal, expected to be completed in the first half of 2025, will give Nordstrom family members including chief executive Erik Nordstrom and chief brand officer Pete Nordstrom a majority stake in the 123-year-old company.
Nordstrom shareholders will receive $24.25 in cash for each share of common stock they hold, representing a 42 percent premium on the closing price March 18, just before news of a deal was first reported, the company said. Its board will also authorize a special dividend of $0.25 per share when the transaction is complete.
The formation of a special committee was announced earlier this year, after members of the Nordstrom family expressed interest in taking the Seattle-based retail chain private.
The Nordstrom family tried to take the company private about seven years ago but fell short. It went public about 70 years after it was founded as a shoe store in 1901.
Monday’s announcement comes as retailers and department stores have struggled to retain customers who are increasingly turning to online storefronts or cutting back spending amid high inflation and interest rates. Macy’s this year said it would close 150 stores and shift focus to its luxury brands, including Bluemercury and Bloomingdale’s and its smaller Bloomie’s locations. The parent company of Saks Fifth Avenue said in July it would acquire Neiman Marcus for $2.65 billion.
Other retailers have turned to bankruptcy court, most recently the Container Store, which filed for Chapter 11 protection in Texas over the weekend as demand wanes for its storage and organization wares.
Others are moving to close stores outright: Discounter Big Lots, which filed for bankruptcy in September, announced last week that it is now headed toward liquidating roughly 900 stores. On Saturday, Party City confirmed that it’s winding down operations after nearly 40 years and would close more than 700 locations.
Nordstrom shares closed Monday at $24.17, down nearly 1.5 percent, giving it a market value of almost $4 billion. The stock is up 31 percent year to date.
