Shane Savitsky Sep 12
Nordstrom family wants to buy out department store chain
The Nordstrom family is nearing a deal to procure about $1 billion in backing from private equity firm Leonard Green in a step toward buying out its department store chain, per CNBC.
- What's needed: The Nordstroms already own 31.2% of the brand, but they'll need to pull together $7 to $8 billion from banks to finance the deal.
- Why they want to go private: The family wants to start backing some ideas — like stores without merchandise (think Warby Parker) and heavy investments in e-commerce — that might make investors wary. Taking the company private would sidestep those concerns.
- What could go wrong: Department stores are viewed as a dying breed that come loaded with debt and overhead, making it possible that this deal could fall through.