Nordstrom has announced that it will become a private company following a buyout deal valued at $6.25 billion from the company’s founding family and Mexican department store El Puerto de Liverpool. The deal, expected to close in the first half of 2025, will see the Nordstrom family holding majority ownership with 50.1%, while Liverpool will own 49.9%. Common shareholders will receive $24.25 in cash for each share of Nordstrom common stock they hold.
This move comes after a failed attempt to go private in 2018. Nordstrom CEO Erik Nordstrom expressed excitement about the new chapter for the business, emphasizing the company’s longstanding commitment to helping customers look and feel their best. Despite a 1% drop in Nordstrom’s stock after the announcement, the company beat Wall Street’s sales expectations in the fiscal third quarter with a 4% year over year revenue growth.
The retail industry as a whole has been facing challenges, with luxury clothing stores like Nordstrom feeling the pinch as customers become more price-conscious and selective about their purchases. Nordstrom, originally a shoe store founded in 1901, has since evolved into a department store chain with over 350 locations. El Puerto de Liverpool, the buyer in this deal, operates department store chains Liverpool and Suburbia, along with owning 29 shopping centers in Mexico.
Photo credit
www.nbcnews.com
