What's New
The Norstrom department store chain is set to go private after the Nordstrom announced on Monday that it had made a $6.25 billion deal to buy all remaining shares in the company alongside Mexican department store company El Puerto de Liverpool.
"For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best," Nordstrom CEO Erik Nordstrom said in a statement. "Today marks an exciting new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives long into the future."
Why It Matters
Nordstrom, which been in business for over a century, is one of only a small handful of U.S. luxury department store chains to remain in business as consumers increasingly reign in their discretionary spending and move towards online retailers for the purchases that they do make.
A previous attempt by Nordstrom to go private failed in 2017 after the family was unable to secure financing with a private equity firm, according to CNBC.
What To Know
Nordstrom was founded as a shoe store in 1901 by family patriarch John W. Nordstrom, a Swedish immigrant who started the company with money acquired by prospecting during the Klondike Gold Rush.
The company went public in 1971, about eight years after it expanded into a department store. It has been owned by the Nordstrom family during its entire existence, with members of the family taking corporate leadership roles during most of the company's 123-year history.
This is a developing article and will be updated with additional information.
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