Nordstrom to go private in $6.25 billion deal with founding family

Nordstrom on Monday announced will go private after agreeing to a buyout deal valued at about $6.25 billion from Nordstrom’s founding family and Mexican department store El Puerto de Liverpool.

The company’s board of directors unanimously approved the transaction, which is expected to close 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 will own 49.9%. Common shareholders will receive $24.25 in cash for each share of Nordstrom common stock they hold, according to a news release.

“For more than a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best,” Nordstrom CEO Erik Nordstrom said in a press release. “Today marks an exciting new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure that Nordstrom thrives long into the future.”

It’s not the first time the retailer has tried to go private. A previous effort disgorged in 2018. In September, the Nordstrom family offer $23 per share for the chain, which valued the company at about $3.76 billion.

Nordstrom’s stock fell nearly 1% in early trading. The company’s shares have been split ever since a Reuters report in March that the family wanted to take the company private.

Nordstrom beat Wall Street sales expectations in November for the third quarter, as revenues grew about 4% year over year. But the company only gave a slightly rosier full-year sales forecast as it said it expected a soft holiday season.

Luxury clothing stores have come under pressure as well as retailers Walmart, Best Buy and Target they reported that customers remain selective when it comes to buying items that are wants, not needs, and they paid more attention to the price.

Nordstrom was founded as a shoe store in 1901 before transforming into a department store that sells a wide variety of clothing and accessories at more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations.

El Puerto de Liverpool operates two other department store chains, Liverpool and Suburbia, and owns 29 shopping centers throughout Mexico.