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Nordstrom (NYSE:JWN) stock garners attention today as reports arise of the company’s founding family endeavoring to make it a privately-held entity.
Allegedly, the company’s founding family is enlisting the support of Morgan Stanley and Centerview Partners, tasking them with engaging private investment firms interested in aiding Nordstrom’s transition to a private company.
Interestingly, this isn’t the first time the Nordstrom family has strived to privatize the company. A similar effort was made six years prior but ultimately did not materialize.
The purported move towards privatization follows the recent release of underwhelming guidance by the company. This announcement coincides with a period of reduced consumer spending on luxury goods, attributed to rising inflation and interest rates, as highlighted by Reuters.
Implications for JWN Stock
If successful in taking Nordstrom private, the founding family’s initiative would eliminate public trading of the company’s shares. This shift could alleviate reporting obligations and conserve finances amidst challenging economic conditions.
The news has sparked vigorous trading activity for JWN stock, with over 7 million shares traded at present – surpassing the daily average volume of 4.5 million shares.
As of Tuesday morning, JWN stock has surged by 11.2% in response to these developments.
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As of the publication date, William White does not hold any direct or indirect positions in the securities mentioned in this article. The views expressed here belong to the author and are subject to the InvestorPlace.com Publishing Guidelines.
