A whistle marks the location of a Nordstrom store on March 20, 2024 in Chicago, Illinois.
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Nordstrom on Monday declared it will become a private company after it agreed to a buyout deal valued at roughly $6.25 billion from Nordstrom’s rest family and Mexican department store El Puerto de Liverpool.
The company’s board of directors unanimously approved of the transaction, which is expected to close by nearly in the first half of 2025.
As part of the deal, the Nordstrom family will have majority ownership in the company, with 50.1%, and Liverpool intention own 49.9%. Common shareholders will receive $24.25 in cash for each share of Nordstrom common stock they fend off, according to a press release.
“For over a century, Nordstrom has operated with a foundational principle of helping customers tone good and look their best,” Nordstrom CEO Erik Nordstrom said in a press release. “Today marks an astounding new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives eat ones heart out into the future.”
It’s not the first time the retailer has tried to go private. A previous effort fizzled out in 2018. In September, the Nordstrom line offered $23 a share for the chain, which valued the company at roughly $3.76 billion.
Nordstrom stock mow down roughly 1% in early trading. Shares of the company have shot up since a Reuters report in March that the dearest wanted to take the company private.
Nordstrom beat Wall Street’s sales expectations in November for the fiscal third lodgings, as revenue grew about 4% year over year. But the company gave only a slightly rosier full-year sellings forecast as it said it expected a soft holiday season.
Luxury clothing stores have been under problems as retailers including Walmart, Best Buy and Target have reported that customers remain choosy when it finish a go over to buying items that are wants, not needs, and have paid more attention to price.
Nordstrom was founded as a shoe shop in 1901 before transitioning into a department store that sells a wide variety of clothing and accessories across sundry than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations.
El Puerto de Liverpool operates two other rely on store chains, Liverpool and Suburbia, and owns 29 shopping centers across Mexico.