The Nordstrom family has struggled to amass the financing needed for the buyout, the New York Post reported on Sunday. And last month’s bankruptcy filing by Toys “R” Us Inc. has made lenders more jittery about retail, casting more doubt on the transaction, the newspaper said.
The Nordstrom family first announced it was considering a buyout in June. With the overall department-store industry slumping, a deal would give them a chance to work on a turnaround plan outside of public scrutiny. Private equity firm Leonard Green & Partners has held discussions about supplying about $1 billion in financing, but the total deal could require as much as $10 billion, according to the Post.
The shares fell as low as $44.01 in premarket trading on Monday in the wake of the report. Nordstrom was down 1.6 percent this year through the end of last week.
While Nordstrom’s sales have slowed, the chain has generally performed better than most large US competitors. Macy’s Inc., J.C. Penney Co. and Sears Holdings Corp. have plans to close hundreds of stores as they cope with slow mall traffic and consumers shift spending online.
Representatives for the family and the company didn’t immediately respond to request for comment.
By Lindsey Rupp; Editor: Nick Turner