The Nordstrom family considers taking the retailer private. Credit: The Bold Bureau via Shutterstock.

The board of directors of US-based department store chain Nordstrom has initiated an exploration into strategic alternatives, including a potential take-private transaction proposed by members of the founding family. 

The board has authorised the examination of potential strategies to enhance shareholder value.  

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The decision aligns with the company’s ongoing commitment to executing its strategic plan effectively.  

As part of this evaluation, Erik and Pete Nordstrom, serving as CEO and president, respectively, have expressed their interest in potentially transitioning Nordstrom into a privately held entity. 

In response, the board has established a special committee comprised of independent directors.  

This committee’s mandate is to thoroughly assess any proposals from Erik and Pete Nordstrom, as well as other interested parties, ensuring that any actions taken are in the best interests of the retailer and its shareholders. 

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To assist in this evaluation, the special committee has engaged Morgan Stanley and Centerview Partners as financial advisers, alongside Sidley Austin and Perkins Coie for legal counsel.  

There is no certainty that any specific transaction or strategic change will be pursued or finalised, the retailer noted. 

Nordstrom has stated that it will not provide ongoing updates unless it deems further disclosure appropriate or necessary.  

This announcement follows a Reuters report last month, which cited unnamed sources claiming that the Nordstrom family was considering a second attempt to take the company private, after an unsuccessful bid in 2017. 

In 2017, the family members created a group to explore taking the company private, which included purchasing all outstanding shares.  

However, the company turned down an $8.4bn offer in 2018, deeming it too low. 

The founding family collectively owned about 30% of the company’s shares, according to a Reuters report.