A sign indicates the location of a Nordstrom store on March 20, 2024 in Chicago, Illinois.
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Nordstrom on monday Announce It will go private after agreeing to a nearly $6.25 billion buyout from the founding family of Nordstrom and Mexican department store El Puerto de Liverpool.
The company's Board of Directors has unanimously approved the transaction, which is expected to close in the first half of 2025.
As part of the deal, the Nordstrom family will own a 50.1% majority ownership of the company, and Liverpool will own 49.9%. Common shareholders will receive $24.25 in cash for each share of Nordstrom common stock they own, according to a news release.
“For more than a century, Nordstrom has operated with a core principle of helping customers feel good and look their best,” Eric Nordstrom, CEO of Nordstrom, said in a press release. “Today marks an exciting new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives long into the future.”
This isn't the first time the retailer has tried to go private. Previous effort Faded In 2018. In September, Nordstrom Family It offered $23 per share for the chain, which valued the company at approximately $3.76 billion.
Nordstrom stock fell nearly 1% in early trading. The company's shares have risen since then Reuters report in March The family wanted to take the company private.
Nordstrom Beat Wall Street November sales forecast for the third quarter, with revenue growing about 4% year over year. But the company gave only a slightly better forecast for full-year sales, saying it expects a quiet holiday season.
Luxury clothing stores have been under pressure as have retailers including Walmart, Best buy and goal They reported that customers were still selective when it came to purchasing items that were wants rather than needs, and they paid more attention to price.
Nordstrom was founded as a shoe store in 1901 before transforming into a department store that sells a wide range of clothing and accessories through more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations.
El Puerto de Liverpool operates two other supermarket chains, Liverpool and Suburbs, and owns 29 shopping centers throughout Mexico.
