Nordstrom Suspends Privatization Or Restarts

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

Department store

Inc said that the founder family had suspended the process of privatization due to the difficulty in arranging debt financing before the key holiday shopping season.

Nordstrom shares fell 7% to 39.64 U.S. dollars, the lowest level in five months, and the current market value is about 66 billion.

This year, the US entity retailing industry is still faced with the following

Many companies have declared bankruptcy because of the fierce competition between Amazon (represented by Amazon) and discount stores (represented by TJX).

Nordstrom's competitors, Hudson Fifth s Bay Co., the owner of luxury goods stores such as Saks Fifth Avenue and Lord&Taylor, are also seeking privatization, and share prices fell 5% on the same day.

Nordstrom said in June that the Nordstrom founding family, which owns 31.2% of the company, wanted to privatize the company's delisting.

The Nordstrom family believes that privatization can better achieve the restructuring of the company and the pformation of e-commerce.

Nordstrom has gained a certain advantage in the industry competition through Nordstrom Rack Rack, an investment discount chain. Sales growth in August is better than expected, thanks to the increase in online store sales.

It is reported that the Nordstrom family hopes to cooperate with Leonard Green&Partners LP, an M & A investment company.

The Nordstrom family is also negotiating with other banks, hoping to get 70~80 billion in debt financing.

But recently, representatives of the Nordstrom family told Nordstrom's special committee that because of the difficulty in obtaining debt financing that could enable privatization of the company, the Nordstrom family would temporarily abandon the privatization of the company before the end of the year. After the end of the holiday shopping season, the Nordstrom family will continue to seek private tender.

According to sources, in the upcoming holiday shopping season, it does not mean that Nordstrom will perform well enough to attract the bidders, but can not predict how the holiday shopping season will affect the interest of bank tenders.

However, the leveraged buyout market in the retail industry has become calm. Debt investors generally choose to stay dormant for a while after the recent paction.

For private equity funds, investing in these traditional retail companies is not easy, especially if they fail to gain control and help companies achieve development.

In May, PetSmart, a pet product retailer, issued a $2 billion bond to buy rival Chewy at a price of $3 billion, so far the bond has depreciated substantially.

Last month, private equity Sycamore Partners bought office supplies retailer Staples Inc at a price of $6 billion 900 million last month. The company divestiture its retail business from distribution business, enabling investors to accept the financing.

However, in order to increase yields, Sycamore was forced to reduce the size of its planned bond pactions by 300 million US dollars to 10 billion, which now has a slight depreciation.

Another Nordstrom rival, Neiman Marcus, was also heavily in debt because of leveraged buy-out in the past, and canceled the latest IPO plan earlier this year.

Some radical investors are pushing retailers to explore other strategies.

The hedge fund Snow Park Capital Partners LP recommends that the department store Dillard 's Inc rent some of its own stores to other companies for more returns.

More interesting reports, please pay attention to the world clothing shoes and hats net.