Nordstrom Agrees to $6.25 Billion Buyout

Nordstrom has agreed to a $6.25 billion buyout led by the Nordstrom family and Mexican retail giant El Puerto de Liverpool, aiming to take the company private. This move offers a 42% premium to shareholders over the stock's value as of March 18, 2024, and includes assuming over $2 billion in debt. The decision comes as traditional department stores face intense competition from discount chains and e-commerce, leading to stagnating sales for Nordstrom over the past decade. The deal, expected to close in early 2025, will give the Nordstrom family a majority stake, allowing for long-term strategic planning away from public market pressures. Analysts view this as a chance for Nordstrom to revive its brand without the constant scrutiny of quarterly reports. The board unanimously approved the proposal, with Erik and Pete Nordstrom recusing themselves from the vote.