Nordstrom, Inc. (JWN) Shares Pop on More Going Private Talk

JWN shares were popping on Friday

By Karl Utermohlen, InvestorPlace Writer

Nordstrom, Inc. (NYSE:JWN) announced that the company is still in talks to potentially go private in the future.

Nordstrom, Inc. (JWN)However, the move won’t be an easy one for the department store chain as it needs to seal a deal to attain the necessary financing to do so. The family group behind Nordstrom owns about 31.2% of the retailer.

The group reportedly teamed up with private equity firm Leonard Green & Partners last year to help fund efforts to change the company to a private one. However, the future of such a deal is now uncertain over a growing number of bankrupt leveraged buyouts, plus some uncertainty over what the retail landscape will look like in the future.

In October, Nordstrom announced that it had paused talks to go private in order to focus on its holidays, after which talks would resume. Going private would help the family achieve what it wants with the company.

It has been a tough public market for all retailers, and being in this position makes it difficult to change its sails in order to succeed in the industry. If the company were to bring financing, it would help it invest in the e-commerce sphere.

The move would help Nordstrom realign some stores and restructure the way it conducts business. The company will need roughly $7 billion to $8 billion to make the necessary changes.

JWN stock gained 3% on Friday.

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