Buyout firm Sycamore vies to take Nordstrom private, sources say

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Buyout firm Sycamore vies to take Nordstrom private: According to individuals familiar with the situation, Sycamore Partners is one of several private equity groups that have expressed interest in purchasing Nordstrom, a department store located in the United States.

As the business stated last month, Nordstrom’s president Pete Nordstrom and CEO Erik Nordstrom have been looking about privatizing the retailer. There is no assurance of a deal, and negotiations are anticipated to drag on for a few more weeks. Sycamore Partners, which already controls Belk, a regional U.S. department store operator, is among the possible contenders.

Nordstrom’s long-term debt was $2.9 billion in December, and the company’s stock price jumped 6% to $19.90 on the New York Stock Exchange after the revelation, valuing the company at around $3.3 billion.

Consumer spending limitations caused by inflation and rising borrowing rates have been a problem for Nordstrom and other U.S. shops. Reportedly, Macy’s Inc. is likewise up for grabs.

Erik Nordstrom, CEO, and other family members own around 30% of the company, which operates more than 350 stores and an online marketplace. There have been prior efforts to privatize Nordstrom, with a special board committee rejecting a $8.4 billion bid in 2018. The Nordstrom family now owns 9.5% of the corporation, up from 5% back then.

The New York-based Sycamore Partners bought Belk in 2015 and is still in charge, even if the company restructured its debt in 2021 because of problems caused by the COVID-19 pandemic. Sycamore has previously considered buying out other department store operators, like Kohl’s Corp.


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Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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