Nordstrom confirms it's looking to go private as clothing retailers hit by weak demand

MW Nordstrom confirms it's looking to go private as clothing retailers hit by weak demand

By Bill Peters

The department-store chain says it has formed a committee to explore going private amid interest from its founding family

Nordstrom Inc. has formed a special committee of independent directors to explore going private, the company said on Thursday - a move that arrives as clothing retailers struggle with subdued demand and pressure from investors for stronger profits.

The department-store chain $(JWN)$ said its board formed the committee after members of the company's founding family - Chief Executive Erik Nordstrom and President Pete Nordstrom - expressed interest in such a deal.

In connection with that move, the company said the committee had retained investment banks Morgan Stanley and Centerview Partners as financial advisers, as well as law firms Sidley Austin and Perkins Coie as legal counsel.

"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, adding that there was no guarantee of any deal.

Nordstrom shares were up nearly 2% after hours on Thursday.

The announcement confirmed reporting earlier in the day by the Wall Street Journal, and by Reuters last month. Nordstrom has faced questions about whether private-equity firms might be interested in striking a deal to take the company private, as it's searched for ways to keep growing its business in a challenging environment for apparel retailers.

When it reported quarterly results last month, Nordstrom warned of a "cautious consumer that is mindful of discretionary purchases in light of inflation, higher interest rates and the resumption of student-loan payments." The chain has exited its business in Canada and tried to lean into its off-price Rack stores and strengthen its online business.

Rival Macy's Inc. $(M)$ earlier this year rejected a bid to be taken private by Arkhouse Management and Brigade Capital Management.

-Bill Peters

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April 18, 2024 17:31 ET (21:31 GMT)

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