A sign marks the location of a Nordstrom store at a shopping center on March 20, 2024 in Chicago, Illinois.
Scott Olson | Getty Images
THE Nordstrom The family is again considering taking the department store private and has formed a special committee to evaluate offers, it announced Thursday.
CEO Erik Nordstrom and President Pete Nordstrom recently told the company’s board of directors that they were interested in entering into a privatization deal for the 123-year-old department store, Nordstrom said in a news release.
Accordingly, the Board of Directors has formed a special committee composed of independent and disinterested directors who will evaluate the proposals of the two Nordstrom brothers and any other outside parties.
The company said Nordstrom’s board is “committed to increasing shareholder value” and that the committee will determine whether potential deals are in the best interests of the company and its owners.
The department store cautioned that there was no guarantee a deal would be reached or approved.
In 2017, private equity firm Leonard Green & Partners nearly took the company private, but the deal ultimately fell through.
At the time, management hoped that privatization would allow it to make the necessary investments to help it adapt to a changing retail landscape, without the constant oversight that comes with a public company.
The announcement comes as department stores face an uncertain future and struggle with declining sales. Many brands that have long relied on department stores for revenue are now focusing on their own stores and websites and are less interested in working with wholesalers.
Nordstrom’s interest in going private was first reported by Reuters last month. Shares rose about 2% in extended trading after the news and are up about 1.5% year to date as of Thursday’s close.
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