Private Funds Help Nordstrom Complete Privatization Delisting

According to the world clothing shoes and hats net, the United States

Department store

It may cooperate with private equity fund Leonard Green&Partners, which provides 10 $100 billion of funds to help Nordstrom complete the privatization delisting.

The Nordstrom family said in June that it wanted to get rid of the stock market by privatisation and get rid of it.

Strict scrutiny and close attention from investors, so as to achieve the company's restructuring plan.

The Nordstrom family has a stake of about 31% of Nordstrom, and a cooperation agreement with other investors will help them acquire publicly traded stocks in the securities market.

The Nordstrom family hopes to get at least $50 billion in debt financing through the $1 billion offered by external investors.

According to the world clothing and shoe net, the Nordstrom family and Leonard Green have not yet reached a final agreement. The Nordstrom family is negotiating with other banks, hoping to get 70~80 billion in debt financing.

In the next few weeks, the Nordstrom family will formally submit a private takeover offer.

Leonard Green and Nordstrom have yet to comment.

Before the announcement, Nordstrom's latest concept store was favored by investors. They plan to open a series of "zero inventory" small stores where consumers can try on single products.

The store also matched the stylist, providing consumers with wear and build discussions.

But such stores are not in stock, and Nordstrom will be pferred from other department stores or websites.

The first store will open in West Hollywood, California, in October 3rd, covering an area of 3000 square feet.

Despite the weakness of the department store industry, although Nordstrom has performed better than most of the large chain corporation in the US, its share price has fallen by 6% this year.

However, after the announcement of the cooperation between Nordstrom and Leonard Green, the shares of the company surged 12% in late trading, climbing to $50.3 per share, eventually closing at 49.45 dollars per share.

Data firm CMA data showed that credit default insurance for Nordstrom bonds rose 77 basis points to 317 basis points.

This means that in the next five years, it will cost US $31.7 to guarantee $10 million a year.

Due to the reduction of the flow of shopping malls on the ground and the impact of the electricity supplier, Messi, department store, J.C. Penney Co. and Sears Holdings Corp. and other traditional department stores chain corporation have closed hundreds of stores; the Fifth, Avenue, Lord&Taylor, and so on, the owner of the luxury department store, the Hudson "Lord&Taylor", were also very weak in the last quarter, and sales and profit margins were lower than expected.

Joel Bines, general manager and chief executive officer of retail business at AlixPartners, said privatization delisting means that Nordstrom has more time and less restrictions, focusing on business development. This shows that Nordstrom is trying to find ways of developing department stores suitable for changing environment every day.

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