Members of the Nordstrom family told the department store's board that the group has suspended their efforts to take the retailer private for the rest of this year.
The Nordstrom family said it plans to continue its efforts after the conclusion of the holiday season.
Shares in the Nordstrom stock (NYSE: JWN) turned lower by $2.49, or 5.8%, to $40.15 Monday morning as investors took in the news.
The Nordstrom family group, which owns 31.2% of the 116-year-old retailer, said in June it was looking to take Nordstrom private and had appointed an independent special committee to evaluate the offer.
The retailer was hoping that as a private company, Nordstrom would be able to make investments that help it adapt to the changing retail landscape without worrying about short-term shareholder reaction.
Media sources say the firm had been in talks with private equity company Leonard Green to provide equity financing on the deal, but had trouble completing a financing package for the deal.
The holiday season served as an informal deadline for all financing parties, because banks tend to avoid syndicating debt during the holiday season.
Nordstrom is not the only retailer eager to escape the public spotlight only to find itself challenged to obtain the necessary financing to do so.
“No assurances can be given,” read a news release Monday morning, “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.”
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