A special committee of the Nordstrom Board of Directors has rejected a bid put forth by the Nordstrom family to take the company private.
In a statement, the special committee said the $50 per share cash price being offered was too low. The company’s stock closed at $51.90 Monday.
The committee also said it will stop providing due diligence information to the group.
“Furthermore, unless the group can promptly and substantially improve the price it is proposing to pay for the company, the special committee intends to terminate discussions,” the statement said.
Three members of the Nordstrom family are co-presidents of the company and currently run the business. They are also part of the group making the bid. The company announced in June 2017 that the family was exploring taking the company private.
The special committee consisting of independent directors was formed to make an impartial assessment of any offer and to protect the interests of the company and all of its shareholders.
Nordstrom has transformed its business over the past several years and has been ahead of the curve when it comes to digital investments.
Retail companies are not popular investments these days, however, and the Nordstrom family is likely having a harder time than expected raising the money needed to take the company private.
Nordstrom recorded total sales of $15 billion in 2017, a 4% increase from the previous year. Digital sales accounted for 26% of total sales. Profits rose 23% to $437 million.
