Nordstrom Family to Offer Preferential Terms to Attract Potential Buyout Partner
A group of Nordstrom Inc (JWN) - Get Nordstrom, Inc. Report family members seeking to take the upscale retailer private will offer preferential terms to potential equity partners willing to fund a buyout, Reuters reported.
The family's decision could suggest investors are wary of leveraged buyouts for department store chains, Reuters noted. Nordstrom's private equity-owned peer Neiman Marcus Group Inc has struggled with debt as online retail takes the place of flagship and anchor stores.
Insiders have said private equity firms Leonard Green & Partners LP, Apollo Global Management LLC (APO) - Get Apollo Global Management Inc. Report and KKR & Co (KKR) - Get KKR & Co. Inc. Report are among those in talks with the Nordstrom family. The family has also reached out to sovereign wealth funds in a bid to raise $1 billion in equity from outside investors.
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Nordstrom stock traded up over 3% shortly before Thursday's market close.
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