The founding family of Nordstrom (NYSE:) is considering a move to privatize the company as competitors like Macy's face divestiture pressure and challenges continue in the department store industry.
Specifically, the company's CEO Eric Nordstrom and President Pete Nordstrom have expressed interest in a potential acquisition to Nordstrom's board of directors.
In response, the department store chain created a special committee of independent directors to consider Nordstrom's proposal and other proposals.
“The special committee retained Morgan Stanley & Company LLC and Centerview Partners LLC as financial advisors and Sidley Austin LLP and Perkins Coie LLP as legal advisors,” Nordstrom said in a statement.
However, he added that there is no guarantee that these discussions will lead to a formal transaction.
Over the past five years, Nordstrom's stock price has fallen about 50%, giving the company a market valuation of about $3 billion.
The Nordstrom family, which controls about 30% of the company, has taken Nordstrom privately, including a high-profile attempt in 2017 when the family partnered with private equity firm Leonard Green & Partners to take Nordstrom private. We have considered the transaction multiple times.
However, these negotiations were abandoned after less than a year when the board found their proposals insufficient.
JWN stock rose 2% in after-hours trading.
