In tatters

21 March 2018 By Lauren Silva Laughlin Follow @TheRealLSL

The board’s rejection of the founding family’s $8 bln offer for the retailer makes both sides look too stubborn. Nordstrom is a middling performer in a struggling industry. Compromise would have suited shareholders well. Instead, they face an ill-fitting future.

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Nordstrom's special committee of independent directors has terminated talks about a management buyout with the family that owns 31 percent of the retailer, the company said in a statement on March 20. The committee, which is being advised by Centerview Partners, could not reach an agreement on a deal, the statement said.

The U.S. retailer said on June 8 that family members – including co-Presidents Blake Nordstrom, Peter Nordstrom and Erik Nordstrom, President of Stores James Nordstrom, Chairman Emeritus Bruce Nordstrom and Anne Gittinger – were exploring a deal to take the company private.

The Wall Street Journal previously reported that the insiders, who had partnered with Leonard Green & Partners, had offered $50 a share for the company. Nordstrom’s stock had fallen almost 3 percent in mid-afternoon trading to $47.96.

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