Nordstrom ends buyout talks

The financially troubled department store Nordstrom has run into a roadblock on its quest to go private.

After scurrying to raise financing for what could be a $10 billion leveraged buyout, Nordstrom announced that it has suspended plans to take itself private, according to the New York Post.

The Nordstrom family originally planned to put up its 31 percent stake in the company, which as of Aug. 1 was valued at $2.5 billion, and private-equity firm Leonard Green & Partners was to contribute another $1 billion in equity.  But now it won’t try again until after the holiday season.

“The Special Committee … is prepared to thoroughly evaluate such a proposal from the Group at that time, if one is made,” the company said in a statement. “In the meantime, the company and its employees will remain focused on running the business and delivering the best shopping experience for customers”

The chain’s shares fell more than 6 percent in early trades after the announcement.

Nordstrom has already invested at least $249 million in a planned store at Gary Barnett’s Central Park Tower. It is not likely that the new store would be affected if the company goes private. [NYP] – Christopher Cameron