Nordstrom Inc. said Thursday it formed a special committee to once again consider the possibility of taking the Seattle retailer private.
The news comes after a Reuters report last month said members of Nordstrom’s founding family had tapped Morgan Stanley and Centerview Partners to gauge interest in a possible go-private transaction.
Nordstrom confirmed in a statement Thursday CEO Erik Nordstrom and President Pete Nordstrom have expressed interest in another go-private plan.
The retailer said it hired Morgan Stanley & Co. and Centerview to act as financial advisors.
“The special committee will carefully evaluate any proposal from Erik and Pete Nordstrom and any proposals from other parties and consider whether they are in the best interests of Nordstrom and all shareholders,” the company said in a statement.
Moelis & Co. is acting as financial advisor to Erik and Pete, a filing with the Securities & Exchange Commission said. The SEC filing also indicated the Nordstroms do not currently have debt or equity financing lined up for a possible deal.
The two hold a combined 9.5 percent of Nordstrom’s outstanding shares of common stock, according to the SEC filing.
Market Reaction
Wall Street reacted by sending Nordstrom shares up 1.5 percent in after-hours trading to $19.02. The company had a recent market cap of $3.06 billion.
In 2017, the Nordstrom family explored a go-private transaction, but talks ended when the two sides were unable to agree on price.
This latest move by the Nordstroms comes as the retailer’s namesake and largest business faces increased pressure by a more price conscious consumer and misses on brand assortment.
The banner’s sales fell 8.2 percent for the fiscal year ended Feb. 3 to $9.4 billion.
Meanwhile, the company’s Nordstrom Rack off-price business is a growth story, with new locations continuing to open this year.
Rack’s sales for the year fell less than 1 percent to $4.8 billion.
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