Nordstrom, Inc. (NYSE:JWN) stock was up today on reports of the company preparing to go private.
According to these reports, the family that founded Nordstrom, Inc. has been in contact with Leonard Green & Partners to take it private. These reports claim that an offer for the retailer could be made within in the next few weeks.
The reports that Nordstrom, Inc. is in contact with Leonard Green & Partners to go private come from an unnamed source that is close to the matter. This source claims that Leonard Green & Partners is willing to provide $1 billion in funding to help take the company private.
Talk that Nordstrom, Inc. is looking to go private has shown up before. Previous reports said that it was in talks with banks to raise between $7 billion and $8 billion for the effort. The option of going private may be good for JWN stock, as the retail market has been slowing down lately, reports Reuters.
Nordstrom, Inc. has actually been looking for ways to overcome the decline in retail. This includes opening a new concept store in California. This store doesn’t carry any merchandise and instead focuses on services. It also allows customers to pick up online orders and return goods from other stores and online.
Nordstrom, Inc.’s desire to avoid slumping sales comes as other retailers are suffering from a decline in foot traffic. Perfumania Holdings, Inc. (NASDAQ:PERF) and Vitamin World are among the companies that have recently filed for bankruptcy. There’s also talk that Toys R Us may be considering the option, as well.
JWN stock was up 6% as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
