Nordstrom Inc.'s founding family group is in talks to boost its stake in the company to over 50% amid board tensions following a decline in the retailer's shares, The Wall Street Journal reported July 31, citing people familiar with the matter.
The family may reportedly try to raise its stake by buying back shares at a premium. The report noted that this move could face opposition from some independent directors, who are wary of letting the family take advantage of stock price declines.
The discussions are at an early stage and could fail to materialize, the Journal said.
Also, the Journal reported that the board has been trying to get someone from outside to replace two great-grandsons of Nordstrom's founder.
Nordstrom did not immediately respond to S&P Global Market Intelligence's request for comment.
In 2017, the members of the Nordstrom family tried to buy the company and take it private. The board's special committee rejected the proposal in 2018, saying said it intends to end discussions unless the family group can "substantially improve the price it is proposing to pay."
The Nordstrom family owns about 31% of Nordstrom's common stock, according to an amended ownership filing on Feb. 4.