Nordstrom will go private in a $6.25 billion deal with the founding family

Nordstrom on Monday announced will become a private company after agreeing to a buyout deal valued at approximately $6.25 billion from Nordstrom’s founding family and Mexican department store El Puerto in Liverpool.

The company’s board of directors unanimously approved the operation, which is expected to close in the first half of 2025.

As part of the deal, the Nordstrom family will own the majority of the company, with 50.1%, and Liverpool will own 49.9%. Common stockholders will receive $24.25 in cash for each share of Nordstrom common stock they own, according to a news release.

“For more than a century, Nordstrom has operated on a core principle of helping customers feel good and look their best,” Nordstrom CEO Erik Nordstrom said in a press release. “Today marks an exciting new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure that Nordstrom thrives well into the future.”

It’s not the first time the retailer has tried to go private. A previous effort faded in 2018. In September, the Nordstrom family offered $23 per share for the chain, which valued the company at approximately $3.76 billion.

Nordstrom shares fell about 1% in early trading. The company’s stock has soared since then a Reuters report in March that the family wanted to take the company private.

Nordstrom beat wall street November sales expectations for the third quarter as revenue grew about 4% year over year. But the company only gave a slightly more upbeat full-year sales forecast as it said it expected a soft holiday season.

Luxury clothing stores have been under pressure as inclusive retailers Walmart, Best Buy i objective have reported that customers remain discerning when it comes to purchasing items that are wants, not needs, and have paid more attention to price.

Nordstrom was founded as a shoe store in 1901 before evolving into a department store that sells a wide variety of clothing and accessories at more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations.

El Puerto de Liverpool operates two other department store chains, Liverpool and Suburbia, and owns 29 shopping centers throughout Mexico.