Upscale US fashion retailer Nordstrom has stopped exploring options to take the company private – at least for the rest of this year.
The company had been keeping tight-lipped on reports it was nearing a deal with private equity firm Leonard Green & Partners to help fund a buyout, but in a statement this week said it intends to continue efforts to explore a going private deal after the holiday season.
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“The special committee, which is committed to protecting the interests of the company and all its shareholders, is prepared to thoroughly evaluate such a proposal from the group at that time, if one is made. In the meantime, the company and its employees will remain focused on running the business and delivering the best shopping experience for customers,” it said.
The company’s board of directors formed a special committee of independent directors in June to explore any possible transaction.
The Nordstrom family currently owns around 31% of the company. However, they are thought to have faced challenges in financing a takeover of the US$7bn company due to lenders demanding interest rates as high as 12%.
In its second-quarter, Nordrstrom booked a marked improvement in sales on the prior quarter, but saw earnings drop to $110m from $117m, and retail gross profit narrow 25 basis points to 34.1%.
US Q2 in brief – Finish Line, Zumiez, Tailored Brands, Vince Holding
