Nordstrom Family, Mexican Group Take Department Store Chain Private

Century-old department store Nordstrom has agreed to a $6.25 billion deal to go private, led by members of the Nordstrom family and a Mexican retail group.

Traditional department stores like Nordstrom have struggled to compete with major retailers such as Walmart, Target, fast-fashion brands, and e-commerce giant Amazon. I Photo: Baron Maddock Wikimedia Commons

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The move reflects the pressures traditional department stores face from discount chains and other competitors, Matt Ott reported for the Associated Press.

As a private entity, Nordstrom could have greater flexibility in revitalizing its business. Shareholders will receive $24.25 in cash per share of common stock—roughly $4 billion in total—representing a 42% premium over the company’s stock price on March 18, when rumors of the deal first surfaced.

The acquiring group will also assume over $2 billion in Nordstrom debt.

Traditional department stores like Nordstrom have struggled to compete with major retailers such as Walmart, Target, fast-fashion brands, and e-commerce giant Amazon. Nordstrom’s sales have stagnated over the past decade, leading to cost-cutting measures.

Last year, the company announced the closure of all Canadian stores, eliminating 2,500 jobs.

Nordstrom first entered Canada in 2012, opening its inaugural store in Calgary’s CF Chinook Centre in September 2014. However, the venture failed to gain traction, ultimately resulting in its retreat from the market.