Nordstrom’s shares saw a 9% surge in Tuesday’s closing following reports of the department store chain’s potential move to go private.
The retailer’s founding family is collaborating with Morgan Stanley and investment bank Centerview Partners to look into private equity interest in the company. Morgan Stanley chose not to provide a comment on the matter.
However, the deal might not materialize, citing a previous unsuccessful attempt to privatize Nordstrom back in 2018.
Amidst a challenging retail environment characterized by fierce competition and consumer caution due to inflation, Nordstrom has grappled with driving sales. Earlier this month, the company presented a bleak sales forecast for 2024.
Nordstrom anticipated full-year revenue to fluctuate between a 2% decline and a 1% increase compared to 2023.
Prior to Tuesday’s surge, the company’s shares had experienced a 7% decline since the beginning of the year.
