Nordstrom rejects buyout deal from Nordstrom family

NEW YORK — Department store operator Nordstrom said Monday it had rejected a takeover offer from members of the Nordstrom family, calling the price “inadequate.”

The family group, including co-presidents Blake, Peter and Erik Nordstrom, offered $50 in cash for each share of the company that the family doesn’t own, plus the same price for about 21 per cent of the company that individual family members own. In total, the family members — who are decedents of founder John W. Nordstrom — own about a 30 per cent stake in the company, according to FactSet.

A special committee for the company’s board of directors said it rejected the offer and said it will stop discussions with the family members unless they can increase the price. Last year, Nordstrom’s board formed the committee to represent the company in any talks with the family over a potential sale.

Shares of Seattle-based Nordstrom Inc., which closed at $51.90 on Monday, fell about 3 per cent in extended trading to $50.36, still above the offer price.

Nordstrom, like other department stores, is trying to adapt to changing customer behaviour. The company reported sales and profits last week that fell short of expectations for the quarter that includes the holiday season. The missed targets overshadowed Nordstrom’s healthy 2.6 per cent increase in sales at established stores, which is a key measure of a retailer’s health.

Taking the company private would pave the way for the chain — which traces its roots back to a Seattle shoe store opened in 1901 — to manage its reinvention without the watch of the public markets.

Just Posted

Is the fate of Red Deer’s Parsons House solely in the hands of the province?

Demolition of old police station next door to begin this fall

Fundraiser to help keep kids warm in Blackfalds

Community Warmth Fall Fundraiser

Piper Creek Foundation gets a new name

Red Deer subsidized housing program for seniors

Reveen returns to Red Deer

Presented by Friends of Red Deer Regional Hospital

2019 Winter Games will transform Red Deer: Olympic organizer

Team leader behind 2010 Vancouver Winter Olympics provides inspirational pep talk

WATCH: Red Deer students take part in annual run

Dawe/St. Pat’s Run reaches 40th anniversary

Smile Cookie fundraiser campaign for Reading College kicks off

Fundraising campaign runs Sept. 12-18 for program that helps children improve their reading

‘Nightmare that won’t end’: Storm evacuees can’t return yet

WILMINGTON, N.C. — Hundreds of people waited in long lines for water… Continue reading

New bridge collapses into river in rural Saskatchewan hours after opening

HYAS, Sask. — A rural politician in eastern Saskatchewan says he’s at… Continue reading

Halifax researchers tag great white shark in Atlantic Canada for first time

HALIFAX — For the first time in Atlantic Canadian waters, scientists have… Continue reading

Liberal riding association president blindsided by MP’s defection

OTTAWA — The president of an Ontario Liberal riding association says he… Continue reading

Pope gives bishops more decision-making options

VATICAN CITY — Pope Francis decreed on Tuesday that ordinary Catholics should… Continue reading

Hurricane rating system fails to account for deadly rain

TRENTON, N.C. — When meteorologists downgraded Hurricane Florence from a powerful Category… Continue reading

Glad company: Trailer for Disney’s ‘Mary Poppins Returns’

LOS ANGELES — A beloved nanny is preparing to take to the… Continue reading

Most Read