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Nordstrom JWN+0.06% really wants to go private (again).
The department store said on Wednesday that a special committee of its board confirmed a $3.8 billion buyout proposal from founders Erik and Peter Nordstrom, alongside Mexican retailer El Puerto de Liverpool, to buy all outstanding shares of the company for $23, a court filing revealed.
Nordstrom said there is no guarantee the proposal will proceed, and did not promise whether it would disclose any other information. Thenon-binding proposal was made by members of the Nordstrom family and Liverpool, a separate court filing shows. The Nordstrom board has not yet committed to accepting the offer.
The potential deal would be financed through a mix of rollover equity, cash from the Nordstrom family and Liverpool, and a new $250 million bank loan.
Currently, Erik Nordstrom serves as CEO of the company, while Peter Nordstrom serves as president. The Nordstrom family owns about 33.4% of the company with roughly 54.6 million shares, while Liverpool holds approximately 9.6% with 15.8 million shares.
Nordstrom’s interest in going private again is likely being driven by several factors, including the desire to navigate current retail challenges, seek greater operational freedom, and capitalize on strategic investment opportunities.
The company could also be looking to stay competitive against rivals like Macy’s, and discount retailers like T.J. Maxx. In its second quarter, Nordstrom reported an overall increase in sales across its namesake and Nordstrom Rack stores. Despite this, the company adjusted its full-year revenue outlook, forecasting a potential decline of 1% and up to modest increase of 1% when compared to the previous year.
It isn’t the first, nor the second time, Nordstrom has considered going private. In April, the company’s founders said it they had put together a special committee to evaluate any potential bids. Talks of going private also resurfaced in March, prompting shares to soar. The Seattle-based company first explored the possibility of going private back in 2018.