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Nordstrom suspends efforts to take company private

By Ed Adamczyk
Seattle-based Nordstrom Inc. announced Monday it will suspend efforts to find funding in order to take the company private. Image courtesy of Nordstrom Inc.
Seattle-based Nordstrom Inc. announced Monday it will suspend efforts to find funding in order to take the company private. Image courtesy of Nordstrom Inc.

Oct. 16 (UPI) -- Nordstrom Inc. said Monday it's decided to suspend attempts to take the company private until at least next year.

Since June, the department store has been looking for financing to buy outstanding shares and become a privately-held company. It cited the difficulty of finding funding in the "current retail environment," Bloomberg News reported.

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Analysts have said private ownership of the Seattle-based company could be a useful strategy in attempting a corporate turnaround without demands from shareholders and the glare of publicity.

In a statement Monday, three members of the Nordstrom family said the company would suspend "active exploration" of a transaction to go private. The family owns about 30 percent of the company's stock. Between $5.65 billion and $8.19 billion would be required to buy the remaining shares.

Sales in the retail sector have slowed as online marketers have a growing presence in the industry.

Macy's, J.C. Penney and Sears are among retailers who have enlarged their Internet presence while closing stores. Nordstrom recently announced a "neighborhood hub" concept, in which customers could try on clothing at a store without inventory, then have the items delivered.

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Monday's announcement caused Nordstrom stock to fall by 6 percent Monday to $39.86 per share. The stock has declined 11 percent from the start of 2017.

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