Nordstrom Inc (NYSE:JWN) said its Board of Directors had formed a special committee of independent directors to explore a range of strategic, financial and operational alternatives.
The move comes after CEO Erik Nordstrom and President Pete Nordstrom notified the Board of their interest in pursuing a potential transaction to take the company private.
The special committee will carefully evaluate any proposal from Erik and Pete Nordstrom and any proposals from other parties to see if they are in the best interests of Nordstrom and all shareholders.
This move by Erik and Pete aligns with the challenges facing U.S. department stores amid inflation and borrowing concerns, reported Reuters.
The formation of the committee signals the company's openness to evaluate external proposals as well.
The company's market capitalization stands at approximately $3.06 billion, as per LSEG data.
The founding family's interest in taking Nordstrom private was initially reported in March, marking a renewed effort after an unsuccessful attempt in 2018. The company rejected a bid valued at $8.4 billion, citing undervaluation. Challenges in securing debt financing and disagreement over the price contributed to the breakdown in negotiations.
The family, collectively owning around 30% of outstanding shares, underscores their significant influence in the company's decision-making process.
Rival Macy's Inc (NYSE:M) has also received privatization offers from investors Arkhouse Management Co. LP and Brigade Capital Management, LP in recent months, indicating a broader trend within the retail sector.
Price Action: JWN shares are trading higher by 0.16% at $18.76 in premarket on the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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