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Specifically, the company’s CEO Erik Nordstrom, and President Pete Nordstrom, President, have expressed their interest in a potential buyout to Nordstrom’s board.
In reply, the department store chain has established a special committee composed of independent directors to review Nordstrom’s proposal and any others that may arise.
“The special committee retained Morgan Stanley & Co. LLC and Centerview Partners LLC as financial advisors and Sidley Austin LLP and Perkins Coie LLP as legal counsel,” Nordstrom said in a statement.
However, there are no guarantees that these discussions will lead to a formal transaction, it added.
Over the past five years, Nordstrom’s share value has declined by about 50%, bringing the company’s market valuation to approximately $3 billion.
The Nordstrom family, who control about 30% of the company’s shares, has explored privatization deals multiple times, including a notable attempt in 2017 when the family partnered with private equity firm Leonard Green & Partners to take Nordstrom private.
However, these negotiations were discontinued less than a year later after the board deemed their offer insufficient.
JWN shares rose 2% in after-hours trading.