Nordstrom (NYSE:JWN) stock is in the news Tuesday as reports claim that the company’s founding family is seeking to take it private.
According to these reports, the founding family of the fashion retailer is seeking aid from Morgan Stanley (NYSE:MS) and Centerview Partners in this effort. This has it requesting them to contract private investment firms that may be willing to assist in taking Nordstrom private.
It’s worth noting that this isn’t the first time that the family behid Nordstrom has tried to take it private. The group had a similar plan six years ago that never ended up coming to fruition.
The alleged plan to go private comes after the company reported lackluster guidance this month. This comes at a time when consumers aren’t spending as much on luxury items. Increased inflation and high interest rates are the main factors driving down discretionary spending, Reuters notes.
What This Means for JWN Stock
If the founding family of Nordstrom can succeed in taking the company private, it would no longer see shares traded on a public exchange. That could help the company by reducing its reporting obligations and saving money during a tough economy.
With this news comes heavy trading for JWN stock. That has more than 7 million shares changing hands as of this writing. The company’s daily average trading volume is below that at 4.5 million shares.
JWN stock is up 11.2% as of Tuesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
