Nordstrom may go private
Members of the Nordstrom family are thinking of taking back complete ownership of the department store, the company announced Thursday — a move that could give the family more flexibility as it tries to shield the company from problems plaguing the retail sector.
Nordstrom’s stock price jumped by 16 percent Thursday morning on the news. The stock closed up 10 percent for the day, at $44.63.
No official deal has been made, but Nordstrom’s board has formed a committee of independent directors to evaluate any potential offers.
The group exploring options for taking the company private includes co-presidents Blake, Peter and Erik Nordstrom. It also includes stores president James Nordstrom, Chairman Emeritus Bruce Nordstrom, and Anne Gittinger, the granddaughter of John Nordstrom, who co-founded the store in 1901. Together, the family members own 31.2 percent of the company’s shares.
Taking the company private could give the Nordstroms more room to experiment with different strategies without having to answer to shareholders, said Kathy Gersch, a former executive at Nordstrom who is now an executive vice president at Kotter International, a management firm. “I see it as a positive opportunity for them to really invest in the future of the company,” she said.
Nordstrom has struggled along with other department stores — including Macy’s, Sears and J.C. Penney — as people have migrated from strolling through sprawling malls to doing more of their shopping from home online. Many big-box retailers have shuttered stores in recent months to adjust to the shift in consumer trends.