In this article, Nordstrom announced on Monday that it will transition into a private company following a buyout deal worth approximately $6.25 billion from Nordstrom’s founding family and Mexican department store El Puerto de Liverpool. The company’s board of directors unanimously approved the transaction, expected to be finalized in the first half of 2025.
Under the agreement, the Nordstrom family will hold the majority ownership at 50.1%, while Liverpool will possess 49.9%. Common shareholders will receive $24.25 in cash for each share of Nordstrom common stock they own, as stated in a press release.
Nordstrom CEO Erik Nordstrom expressed, “For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best. Today marks an exciting new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives long into the future.”
This move to go private is not the first attempt by the retailer. A previous endeavor in 2018 did not materialize. In September, the Nordstrom family proposed $23 per share for the chain, valuing the company at around $3.76 billion.
Nordstrom’s stock experienced a slight decline of about 1% in early trading. The company’s shares have risen since a Reuters report in March revealed the family’s interest in privatizing the company.
Nordstrom exceeded Wall Street’s sales projections in November for the fiscal third quarter, with revenue increasing by approximately 4% year over year. However, the company provided a slightly optimistic full-year sales forecast, anticipating a subdued holiday season.
Luxury clothing retailers have faced challenges as customers have become more selective in their purchases of non-essential items, focusing more on price. Nordstrom, established as a shoe store in 1901, evolved into a department store offering a wide range of clothing and accessories through over 350 Nordstrom, Nordstrom Local, and Nordstrom Rack locations.
El Puerto de Liverpool manages two other department store chains, Liverpool and Suburbia, and possesses 29 shopping centers throughout Mexico.
