Nordstrom will soon operate under new ownership. According to the Associated Press, the retailer is being sold to Nordstrom family members and a Mexican retail group for $6.25 billion. The new ownership will operate the store as a private company while also picking up Nordstrom’s $2 billion debt, the AP reported.
The deal, which was unanimously approved, is expected to become official in early 2025. Nordstrom’s board members Erik and Pete Nordstrom, who are set to take over the company, excused themselves from voting.
“While a change in ownership does not automatically remedy all of the problems with the department store operation, it will allow the family and their backers to take a long-term view of the business and make necessary investments and changes away from the short-term scrutiny of public markets,” Neil Saunders, managing director of GlobalData, wrote in a message to clients, per the Associated Press.
Nordstrom started as a shoe store when it was founded in 1901. The company, which opened 23 new stores in 2024 operates 381 Nordstrom and Nordstrom Rack stores across the U.S. Last year, Nordstrom announced that it was shutting down all of its Canadian stores and eliminating 2,500 jobs. The Nordstrom family will have a majority ownership of the company after the transaction becomes official.
Bruce Nordstrom, the executive who helped expand the company, died at age 90 earlier this year. In recent years, he and other Nordstrom family members started the effort to transform the store into a private company with his sons initiating serious buyout negotiations over the past year.
As the Associated Press reported, “Nordstrom shares fell about 1.5% Monday, but they are up 34% this year on rumors of a family takeover. The company’s stock is still down considerably from post-pandemic highs above $40 per share.”
