Nordstrom Family Considers Taking Retailer Private
It's rumored that members of the Nordstrom family are thinking about taking the company private to combat declining sales. Reports say shares of the company, which had a market value of $6.72 billion as of Wednesday closing, jumped as much as 18 percent in its largest gain since February 2009. The group, which owns 31.2 percent of the company, has yet to make a formal proposal. However, Nordstrom family members have stated they're not interested in selling stake to third parties or voting on an alternative deal. "Because of the changing dynamics in the retail environment, the group is evaluating whether the long-term interests of the issuer (Nordstrom) are better served as a privately held company," the members of the Nordstrom family said in a filing.
Total Retail's Take: Nordstrom has fallen victim to a tough retail environment for traditional brick-and-mortar brands. Like many department store retailers right now, Nordstrom has seen its in-store traffic and same-store sales decline. While still rated one of the top retailers in customer service, the growing e-commerce competition has put new pressures on Nordstrom. Going private may help some of those ongoing concerns.
