Published on June 8th, 2017 | by Sofia Vida0
Nordstrom May Soon Be Going Private
According to a new report, Nordstrom has formed a committee and is looking into turning private.
The retail merchant has been hit like many other stores including Macy’s and Sears by the rapidly growing online retail market. Nordstrom has announced declining sales and even has plans to sell 300 stores by the year 2020. In the last six months, shares of Nordstrom have fallen over 25%.
A move of going private culd be a profitable exit for shareholders. The company released a statement on Thursday and said that the members of its namesake family that own 30% of its shares, has “formed a group to pursue the possibility of a ‘going private transaction.” In this transaction, 100% of outstanding shares would be acquired.
According to FactSet, the company has $2.7 billion of long-term deb and had $653 million in cash and short-term investments at the end of the first quarter.
Nordstrom has created a special committee of independent directors to act on behalf of the company and has hired Centerview Partners LLC to act as financial adviser and Sidley Austin LLP to act as legal counsel.
There has been no decision yet on the matter but shares of the stock soared over 10% after the news was reported on Thursday.
Disclaimer: We have no position in Nordstrom, Inc.(NYSE: JWN) and have not been compensated for this article.