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
Clockwise from top left: 312 West 34th Street, 61 North 9th Street, 639 Classon Avenue, and One Fulton Square (Credit: Google Maps)
These were the top 10 NYC retail leases in July
These were the top 10 NYC retail leases in July
Ricky's at 830 Broadway (Credit: NYC Go)
Ricky’s, iconic NYC beauty shop, faces
more closures
Ricky’s, iconic NYC beauty shop, faces
more closures
From top, clockwise: Cushman & Wakefield's Joanne Podell, Showfields' Amir Zwickel, Appear Here's Josh Yentob, Brookfield Properties's Mark Kostic (Credit: Getty, LinkedIn)
When it comes to retail, “real estate in New York is fundamentally broken”
When it comes to retail, “real estate in New York is fundamentally broken”
Jake’s 58 (Google Maps, iStock)
Suffolk OTB to acquire Jake’s 58 in $120M deal
Suffolk OTB to acquire Jake’s 58 in $120M deal
4 Park Avenue (Feil Organization)
With 30K-sf lease, SUNY Empire shrinks Manhattan footprint
With 30K-sf lease, SUNY Empire shrinks Manhattan footprint
604 Fifth Avenue and Minamoto Kitchoan president Kemmei Okada (Photos via Google Maps, Minamoto Kitchoan)
Fifth Avenue’s Childs Building sells for $45M
Fifth Avenue’s Childs Building sells for $45M
(Getty)
Different state, same problem: Office availbility soars in NJ
Different state, same problem: Office availbility soars in NJ
Brian Feil of the Feil Organization and 360-370 Fulton Street (Google Maps)
Feil Organization to buy Downtown Brooklyn development portfolio
Feil Organization to buy Downtown Brooklyn development portfolio
arrow_forward_ios

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

Loading...