The special committee advising the US-based upscale department store chain Nordstrom ‘s board has ended talks with the Nordstrom family about taking the company private, after they could not come to agreement on price.
An offer was put forward by group comprising members of the Nordstrom family, including co-presidents Blake, Peter and Erik Nordstrom and chairman emeritus Bruce Nordstrom, but offer was rejected by the company stating that the offer had undervalued the firm.
In a statement, the special committee said: “…Nordstrom is well positioned to capitalise on future opportunities to gain market share through its customer strategy, centred on three strategic pillars: providing a differentiated product offering; delivering exceptional services and experiences; and leveraging the strength of its brand.”
Previously the family group had offered $50 a share for the shares it did not own, valuing the retailer at just under $10bn.
The family had been working with Leonard Green & Partners, a private investment firm the families efforts to raise the offer depend on the structure of equity Leonard Green contributed, as well as the family’s group ability to secure funding from a third party.
The Nordstrom family expects to boost its digital investments and restructure its offline footprint after taking the company private.
The Special Committee has been advised by Centerview Partners as financial advisor and Sidley Austin as legal counsel.