Nordstrom Board Rejects Family's Buyout Offer, Terminates Discussions
This week, Nordstrom ended buyout discussions with possible buyers. The Seattle Times reports Nordstrom family members were apparently unwilling or unable to substantially boost their $50-a-share offer for the company that bears their name, prompting the retailer’s independent directors Tuesday to terminate buyout discussions. A board committee said in a statement late Tuesday “it could not reach agreement with the group on an acceptable price for the company.”
“The family group disagrees with the board’s decision and are disappointed the board rejected what they believe to be a very fair offer,” said Brooke White, spokesperson for the Nordstrom family.
Total Retail's Take: The legacy retailer has been in limbo for some time now. Nordstrom has a strong customer reputation and brand heritage, however, like many traditional brick-and-mortar retailers today, it needs to grow its digital business and be able to better serve the "on-demand" consumer. The Nordstrom family feels the same way. Their offer represented a 24 percent premium over Nordstrom’s stock price on June 7, 2017, the day before they made their take-private effort known. They're seek to evolve the business for a digital future, but away from Wall Street's eye.