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Report: Nordstrom family group finalizing plans to take company private

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Report: Nordstrom family group finalizing plans to take company private

Nordstrom Inc.'s founding family group is finalizing plans for an offer to take the department store chain private, Reuters reported Feb. 23, citing "people familiar with the matter."

Nordstrom did not immediately return S&P Global's request for comment.

The family group reportedly met with investment banks the week of Feb. 16 and hopes to make a privatization offer as early as March. To make the offer, the group will need funding from the banks, who have to get approval from their credit committees, Reuters reported.

Bruce Nordstrom, former chairman of Nordstrom, already owns 15.43% of the company's outstanding shares, as of Dec. 31, 2017, according to S&P Capital IQ. The estate of D. Wayne Gittinger, which is controlled by Anne Gittinger, the granddaughter of the company's founder, John Nordstrom, holds 9.25% of the company's outstanding shares, according to S&P Capital IQ.

The company said Oct. 16, 2017, that it would hold off on a deal to go private until 2018. Earlier in the year, the company formed an investigative committee to investigate how its founding family could repurchase all the company's outstanding shares.

The company said it wanted to hold off on a privatization offer until after the holiday season. The department store chain has reported a 2.5% year-over-year increase in net sales, along with a 1.2% jump in comparable sales for the nine weeks ended Dec. 30, 2017.