The special committee of the upscale US fashion retailer Nordstrom has put an end to talks with the firm’s founding family group to purchase all of the outstanding shares of common stock of the company, stating the two sides could not agree on an acceptable price for the company.
The move follows a rejection of an initial proposal made by the founding family group – which currently holds about 31% of the company – earlier this month, which the committee branded as “inadequate”.
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Nordstrom rejects family takeover bid
Following a review of the proposal, the special committee said unless the group can “promptly and substantially” improve the price it is proposing to pay for the company, the special committee intends to terminate discussions.
Now, it says Nordstrom is well-positioned to capitalise on future opportunities to gain market share through its customer strategy, centred on three strategic pillars: providing a differentiated product offering; delivering exceptional services and experiences; and leveraging the strength of its brand.
“Nordstrom continues to integrate its digital and physical assets to deliver best-in-class capabilities across supply chain, technology, marketing, product and services to better serve customers on their terms,” the committee said in a statement. “The company is uniquely positioned in the industry and has generated market share gains and industry-leading e-commerce penetration fuelled by investments in digital capabilities to expand customer reach and engagement. The special committee is confident that the company’s ability to leverage its digital capabilities and its local market assets of people, product, and place will support growth across both its full-price and off-price businesses.”
Last week, Nordstrom acquired two retail technology companies – BevyUp and MessageYes – in a move it says will help deliver on speed and create a seamless shopping experience for customers.
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By GlobalDataNordstrom invests in digital technology firms
