A sign marks the location of a Nordstrom store on March 20, 2024 in Chicago, Illinois.
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Nordstrom on Monday announced will become a private company after agreeing to an approximately $6.25 billion buyout from the founding family of Nordstrom and Mexican department store El Puerto de Liverpool.
The company's management board unanimously approved the transaction, which is expected to be finalized in the first half of 2025.
As part of the transaction, the Nordstrom family will have a majority stake in the company (50.1%), with Liverpool owning 49.9%. According to the press release, common shareholders will receive $24.25 in cash for each share of Nordstrom common stock they hold.
“For more than a century, Nordstrom has been guided by a core principle of helping customers feel good and look their best,” Nordstrom CEO Erik Nordstrom said in a press release. “Today begins a new and exciting chapter in our company. On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives in the future.”
This isn't the first time the retailer has tried to go private. Previous effort expired in 2018. In September, the Nordstrom family offered $23 per share for the chain, which valued the company at approximately $3.76 billion.
Nordstrom shares fell about 1% in early trading. Since then, the company's shares have soared in a Reuters report from March that the family wanted to take the company private.
Nordstrom beat Wall Street sales expectations in November for the third quarter as revenues increased approximately 4% year-over-year. However, the company only gave a slightly rosier sales forecast for the full year, saying it expected a mild holiday season.
Luxury fashion stores are under pressure, as are retailers Walmart, Best buy AND Objective report that customers remain choosy when it comes to buying items that meet their wants rather than needs, and are paying more attention to price.
Nordstrom was founded as a shoe store in 1901 and evolved into a department store selling a wide range of clothing and accessories at over 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations.
El Puerto de Liverpool operates two other department store chains, Liverpool and Suburbia, and owns 29 shopping centers throughout Mexico.