Nordstrom’s $10B privatization plan hits significant roadblock

Family owners can’t find lenders

New York /
Oct.October 02, 2017 08:30 AM
 

A $10 billion deal to take retailer Nordstrom private is in danger, thanks in part to the recent Toys R Us bankruptcy.

The Nordstrom family, which owns 31 percent of the company’s shares, reached an agreement last month to buy the remaining shares with the help of private equity firm Leonard Green & Partners. But Green’s $1 billion investment was contingent on getting bank financing, which is hard to come by amid reports of a retail crisis.

“The financing has not worked out. I hear that the Nordstrom financing is not done and no one knows if it can be done,” a source told the New York Post. “Toys R Us isn’t good for anyone.”

Under the the proposed deal the Nordstrom family and Green would invest $3.5 billion and borrow another $6.5 billion. They hope that going private would make it easier to invest in online retail and long-term growth.

Nordstrom is doing better than many of its peers and recently increased its sales, according to the Post.

Going private would likely not have an impact on Gary Barnett’s Central Park Tower project, which Nordstrom is anchoring. The retailer has already invested at least $249 million in the project, which could be New York’s first $4 billion condominium. [NYP] — Konrad Putzier


Related Articles

arrow_forward_ios
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
Empire Capital Holdings' Josh Rahmani, Hakimian Capital's Michael Hakimian, RXR's Scott Rechler and 1330 6th Avenue (Getty, Hakimian Capital, Empire Capital Holdings, 1330aofa.com)
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Urban Commons' Salvatore G. Takoushian with Wagner at the Battery
Urban Commons puts FiDi hotel into bankruptcy
Urban Commons puts FiDi hotel into bankruptcy
(Illustration by The Real Deal; Getty)
Multifamily faces stricter emission caps
Multifamily faces stricter emission caps
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...