The Nordstrom family is reportedly looking to take the Seattle department store retailer private, amid what’s been a challenging stretch for its namesake business.
Reuters reported Tuesday the company’s founding family has tapped Morgan Stanley and Centerview Partners to get a read on private equity firms’ appetite for a possible deal.
This would be the second time the Nordstrom family is attempting such a move. The family explored the option in 2017.
A special committee comprised of the late Blake Nordstrom; President Peter Nordstrom; CEO Erik Nordstrom; Chief Merchandising Officer James Nordstrom; and Anne Gittinger, granddaughter of Nordstrom co-founder John Nordstrom, was established at that time to explore such options. The board ultimately ended talks with the family the following year, after the two sides were unable to agree on price.
Renewed interest in privatization comes as the namesake Nordstrom business continues to struggle. The retailer has grappled with a consumer that’s become more price sensitive, pickier purchasing behavior, excess inventory and a brand assortment that’s been missing the mark in more recent years.
Shifts in the broader department store landscape are also taking place with Macy’s Inc. fielding takeover offers from Arkhouse Management and Brigade Capital.
The Nordstrom banner generated sales of $9.4 billion in the fiscal year ending Feb. 3. That was down 8.2 percent from the previous year.
That’s in contrast with the growing Nordstrom Rack off-price business, where the company has been opening more locations. The Rack banner sales for the year fell a little less than 1 percent to $4.8 billion.
Shares of Nordstrom Inc. jumped as much as 12 percent Tuesday on the Reuters report. The retailer had a recent market cap of $3.03 billion.
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