Nordstrom, Inc. (NYSE:JWN) shares have declined as the company is running out of time to go private.
The retailer has been seeking a suitable partner to buy it out, but it has not been in serious talks with any financial institution that could provide it the terms it needs. Nordstrom is hoping to have the deal complete by early November as going private beyond that might not be possible.
Sources close to the matter say the company is active in contacting potential buyers, but the current conversations between the parties have only been informal. Nordstrom has yet to comment on the matter.
The company said that it’s ideal buyer would be a private equity firm. The firms that are currently in talks with Nordstrom include Leonard Green & Partners, Apollo Global Management LLC (NYSE:APO) and KKR & Co. L.P. Unit (NYSE:KKR).
It has been a difficult time for brick-and-mortar retailers as online retailing has dominated the industry in recent years. Going private would help Nordstrom focus on what it needs to do to get back on top instead of trying to impress shareholders from quarter to quarter.
The new iteration of the company is expected to funnel money into e-commerce, shutting down stores that are not performing as expected, and expanding Nordstrom Rack, which offers products at a discount.
JWN stock fell 4.7% Wednesday.