Nordstrom has had their sights set on taking the upscale retail giant private. However, just weeks after The Post reported the company ran into problems financing their plans, the company announced they were no longer seeking funding to take the company private.
Following their announcement to make Nordstrom a private company, stock shares for the company fell over 6% in early trades. The upscale department store chain issued a written statement that announced they would restart the plan after the, always important, holiday shopping season has ended.
In the statement, the company admitted they would “thoroughly evaluate” any proposal brought forth in the meantime, but executives and other employees will, instead, focus on running the stores and delivering the wonderful shopping experience their customers are used to.
Wall Street investors were taken by surprise over the summer when the announcement that members of the founding Nordstrom family wanted to buyout the century-old, Seattle-based department store chain.
A source informed The Post that bank financing is hard to get, especially following the shocking bankruptcy of the giant Toys ‘R’ Us. However, members of the Nordstrom family had apparently been in talks with Leonard Green, who was considering offering an equity investment of $1 billion.
The deal was probably not a good idea considering the deal price of $10 billion would result in almost $7 billion of debt. Other insiders have said the family grew wary of the risks because the retail industry is so volatile.