Seattle-based Nordstorm prepares to go private
Dec 26, 2024, 3:10 PM
Shoppers come and go from Nordstrom flagship store in Seattle. (File photo: Ted S. Warren, AP)
(File photo: Ted S. Warren, AP)
Nordstrom said it was going private. It continued to move in that direction Monday.
According to a Bloomberg story reported in The Seattle Times, the publically-held Nordstrom has agreed to be re-acquired by the Nordstrom family and a Mexican department store chain. No one really knows about how much the Nordstrom family’s net worth is. Forbes reported the group was worth $3.8 billion in 2015. However, in Dec. 2015, the company’s stock closed at over $50 a share.
The deal is said to be valued at $6.25 billion. It will amount to about $24.25 shares under the new owners’ control. Two-thirds of shareholders must approve the transaction.
Related news: Rack sales grow as shoppers seek discounts, giving hope to Seattle-based company
The stock closed at $24.44 on Thursday.
Competition in retail has become more heated, with Saks Fifth Avenue, Neiman Marcus and Macy’s battling to the forefront.
Nordstrom is known for its luxury brands and high level of service. The U.S. is expected to do well in luxury sales against China in 2025. Analysts say top-end brands are trying to reconnect with the upper-middle class instead of just wealthy consumers.
Family news: Bruce Nordstrom, who helped grow family-led department store chain, dies at 90
Analysts also believe going private will allow the Seattle-based retailer to become more nimble.
If you haven’t been in Seattle very long, you might not know that the Nordstrom family and other civic leaders were the original owners of the NFL’s Seattle Seahawks.
In June 1972, the family and a group of Seattle business leaders announced their intention to acquire an NFL franchise. In June 1974, the league gave the city a team. Then, NFL Commissioner Pete Rozelle announced the official signing of the franchise agreement by Lloyd W. Nordstrom, representing the Nordstrom family as the majority partner of the group. Their first home was the sparkling new Kingdome.
Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X and email him here.
