Categories: Finance and Commerce

Nordstrom family, investor to take retail chain private

What happened

Members of the Nordstrom family said Monday they reached agreement to take their namesake department store chain private in a deal with Mexican retail group El Puerto de Liverpool that values the 123-year-old U.S. company at $6.25 billion. Nordstrom’s board unanimously approved the deal, with CEO Erik Nordstrom and president Pete Nordstrom recusing themselves from the vote.

Who said what

The deal will leave the Nordstroms with majority ownership of the company, which began as a shoe store in Seattle in 1901. Traditional department stores “have suffered in the face of withering competition from giants like Walmart and Target” plus Amazon and “a host of fast-fashion brands,” The Associated Press said. Private ownership may give the family “more leeway in reviving” the company.

Nordstrom has “faced challenges” but “fared better than its competitors, in part because of its favorable real estate and higher income clientele,” The New York Times said. Macy’s said it is closing 150 stores over the next three years and Saks Fifth Avenue is looking to merge with Neiman Marcus. The Container Store filed for Chapter 11 bankruptcy over the weekend while Party City and Big Lots are heading toward liquidation.

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Greg Smith

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Greg Smith

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