The founding family behind Nordstrom Inc is reportedly considering a move to take the U.S. department store chain private, revisiting an attempt that failed six years ago. Nordstrom has engaged investment banks Morgan Stanley and Centerview Partners to connect with private equity firms and gauge their interest in participating in the potential deal. The company's owned real estate is expected to be a key consideration for investors, according to analysts at Goldman Sachs. The analysts also highlighted the importance of the debt structure and interest burden for potential investors. Goldman Sachs reiterated a Neutral rating on Nordstrom with a price target of $18. Nordstrom shares rose 12% to $19.22 on the news, indicating the market's positive response to the potential privatization deal. [550f851d] [63cc97a0] [5e0de2b2]
Bruce Nordstrom, former chairman of Seattle-based Nordstrom Inc., has died at the age of 90. He played a key role in expanding his family's Pacific Northwest department store chain into a national brand. Nordstrom and other third-generation family members took leadership in 1968, brought the company public in 1971, and expanded its footprint across the U.S. He retired from his executive role in 1995 and as chairman of the board of directors in 2006. Nordstrom's survivors include his wife, Jeannie, his sister Anne Gittinger, and seven grandchildren. His sons, Erik Nordstrom and Pete Nordstrom, are currently negotiating a buyout of the company. [fc4d1bba]
The parent company of Saks Fifth Avenue, HBC, has agreed to buy rival luxury department store Neiman Marcus for $2.65 billion in a merger that would create a dominant upscale department store in the U.S. Amazon will take a stake in the new combined company, slated to provide technology and logistics as part of the deal. Saks and Neiman Marcus have long weighed the idea of combining forces to confront a changing market. Neiman Marcus was the first department store to topple into bankruptcy at the start of the pandemic, later emerging under new investment-firm owners. Both chains are facing pressure from luxury brands that are increasingly opening their own retail locations. The merger is likely to face tough scrutiny from federal regulators. Saks Fifth Avenue has 39 stores across North America plus numerous off-price stores called Saks Off 5th. Neiman Marcus has 36 stores plus two Bergdorf Goodman locations. [9fae2511]