Nordstrom struggles in attempt to go private
In June, the Nordstrom family announced plans to take the eponymous department store private. Now the family is facing difficulties in obtaining funding to move forward with the deal.
Currently, the Nordstrom family controls 31.2 percent of the Seattle-based retailer and is working with private equity firm Leonard Green in developing the funds to obtain private ownership of the company. The family needs bank backing in order to finalize the deal however, and is facing roadblocks in closing the $10 billion deal.
Many banks are wary of backing a department store as large retail chains continue to struggle in the current economic environment. Nordstrom’s fellow department store chains such as Macy’s and Sears have faced many store closures and rapid changes in leadership in recent months. The deal could face further roadblocks as the holiday season approaches.
The Nordstrom family’s share in the company is worth an estimated $3.5 billion. They would need another $6.5 billion to take control of the company, which was founded in 1901 by John W. Nordstrom and Carl F. Wallin.
Nordstrom currently operates 122 department stores, in addition to 221 Nordstrom Rack stores. The company has also recently staged pop-up shops in order to increase its foot traffic and announced it would extend the sizing of many of its women’s brands.
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