On Thursday, shares of upscale department store giant Nordstrom Inc. (JWN - Free Report) are soaring, up over 11%--the stock was up 20% at one point—in morning trading after the company announced it is exploring going private.
In a release put out Thursday morning, Nordstrom explained that its Co-Presidents Blake Nordstrom, Peter Nordstrom, and Erik Nordstrom, in addition to President of Stores James Nordstrom, Chairman Emeritus Bruce Nordstrom, and Anne Gittinger, have recently formed a group, along with a number of independent directors to “explore the possibility of pursing a ‘going-private-transaction.’”
The release went on to say that the private transaction being considered would see the group formed by the Nordstrom family acquiring 100% of JWN’s outstanding shares of common stock. But the group has not yet made any formal proposal regarding a potential private transaction, an important thing to note at this time.
Nordstrom said that it has retained Centerview Partners to serve as its financial advisor and Sidley Austin as legal counsel.
Nordstrom has not been able to escape the woes affecting the entire retail industry, especially those afflicting its department store peer Macy’s (M - Free Report) . Its most recent quarterly earnings were weaker-than-expected, though it did report a 37% jump in net income.
Currently, JWN is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘A.’
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