Nordstrom shares soar 20% after announcement it might go private
Nordstrom, Inc. shares are soaring as much as 20% in pre-market trading on reports the brand is exploring going private.
The company has formed a committee to look into the matter, according to a news release.
Shares have been volatile for the past year as Nordstrom announces declining sales. The entire department-store sector has been hit, with Macy's, Sears, and JCPenney closing hundreds of stores.
Nordstrom has been moving into the discount space. The company's off-price store, Nordstrom Rack, has been growing rapidly, to the point that there are more Rack stores than there are regular department stores.
Nordstrom plans to have 300 stores by 2020.
Here's the full release:
Nordstrom, Inc. (NYSE: JWN) announced today that members of the Nordstrom family – Company Co-Presidents Blake W. Nordstrom, Peter E. Nordstrom, and Erik B. Nordstrom, President of Stores James F. Nordstrom, Chairman Emeritus Bruce A. Nordstrom, and Anne E. Gittinger – have formed a group (the "Group") to explore the possibility of pursuing a "going private transaction" involving the acquisition by the Group of 100% of the outstanding shares of common stock of the Company. The Group has not made a proposal to the Company regarding any such transaction.
The Company's board of directors has formed a special committee (the "Special Committee") comprised of the independent directors to act on behalf of the Company in connection with such exploration by the Nordstrom family and any possible transaction. The Special Committee has retained Centerview Partners LLC to serve as its financial advisor and Sidley Austin LLP to serve as its legal counsel.
No assurances can be given regarding the terms and details of any transaction, that any proposal will be made by the Group, that any proposal made by the Group regarding a proposed transaction will be accepted by the Special
Committee, that definitive documentation relating to any such transaction will be executed, or that a transaction will be consummated in accordance with that documentation, if at all.
Nordstrom, Inc. is a leading fashion specialty retailer based in the U.S. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 354 stores in 40 states, including 122 full-line stores in the United
States, Canada and Puerto Rico; 221 Nordstrom Rack stores; two Jeffrey boutiques; and two clearance stores. Additionally, customers are served online through Nordstrom.com, Nordstromrack.com and HauteLook. The Company also owns Trunk Club, a personalized clothing service serving customers online at TrunkClub.com and its seven clubhouses. Nordstrom, Inc.'s common stock is publicly traded on the NYSE under the symbol JWN.
Certain statements in this news release contain or may suggest "forward-looking" information (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. Such statements are
based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual future results may differ materially from historical results or current expectations
depending upon factors including, but not limited to, risks related to disruption of management's attention from the Company's ongoing business operations due to the exploration of a possible "going private transaction" by
the Nordstrom family and the effect of the announcement of the exploration of such a transaction on the Company's relationships with its customers, suppliers, partners, operating results and business generally. Our SEC reports, including our Form 10-K for the fiscal year ended January 28, 2017, contain other information other factors that could affect our financial results and cause actual results to differ materially from any forward-looking
information we may provide. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.