Nordstrom’s stock surged by 9% at the close of trading on Tuesday, spurred by news of the department store chain’s potential move towards privatization.
According to reports, the retailer’s founding family is collaborating with Morgan Stanley and investment bank Centerview Partners to gauge the interest of private equity firms in a possible deal.
This information comes from individuals familiar with the matter, as cited by Reuters. Morgan Stanley refrained from providing any comment on the matter.
However, it was cautioned that a deal is not guaranteed, highlighting that a previous attempt to take Nordstrom private fell through in 2018.
Nordstrom has been grappling with sluggish sales amidst stiff competition in the retail arena, compounded by consumers tightening their purse strings due to inflation.
Earlier this month, the company issued a bleak sales forecast for 2024.
The company anticipates full-year revenue to fluctuate between a 2% decline and a 1% increase compared to 2023.
Before Tuesday’s uptick, Nordstrom’s shares had experienced a roughly 7% decline since the beginning of the year.
