NEW YORK, May 2 (Reuters) – Sycamore Partners is one of the buyout equity firms that have expressed interest in taking U.S. department store Nordstrom (JWN.N), opens new tab private, according to people familiar with the matter.
Nordstrom said last month that CEO Erik Nordstrom and his brother Pete, the company’s president, were exploring options to take the retailer private, confirming a Reuters report that had been published in March.
Negotiations will take several weeks and there is no certainty that Sycamore, which owns regional U.S. department store operator Belk, or any other private equity suitor will reach a deal, the sources said, requesting anonymity because the matter is confidential.
Sycamore declined to comment while representatives for Nordstrom did not immediately respond to a request for comment.
Nordstrom shares rose 6% to $19.90 in afternoon trading on the New York Stock Exchange on Thursday on the news, giving the company a market value of about $3.3 billion. Nordstrom also had long-term debt of $2.9 billion as of the end of December.
Nordstrom and other U.S. retailers have been grappling with curbs on discretionary spending by consumers following a bout of inflation and high interest rates. Macy’s Inc (M.N), opens new tab, another department store operator, has also become a takeover target.
Source: REUTER
