What: Nordstrom shareholders approve $6.25 billion privatisation deal with the Nordstrom family and El Puerto de Liverpool, marking a strategic shift in department store ownership.

Why it is important: The transaction represents a new model for department store evolution, combining family heritage, international retail expertise, and financial innovation to address the sector's declining market share.

Nordstrom shareholders have approved the company's transition to private ownership in a landmark $6.25 billion deal that gives the Nordstrom family a 50.1% controlling stake and Mexican retailer El Puerto de Liverpool 49.9%. The all-cash transaction values Nordstrom shares at $24.25 each, representing a 42% premium over the pre-announcement price. The deal's financing combines rollover equity from both partners, cash commitments from Liverpool, up to $450 million in new asset-backed loans, and existing cash reserves. This strategic move allows Nordstrom to pursue long-term investments and changes away from public market scrutiny, potentially accelerating merchandise improvements and store upgrades. The partnership with Liverpool, which operates 310 stores across Mexico and brings significant retail expertise, positions Nordstrom for its next phase of evolution. While the company maintains $2.7 billion in existing debt, the private structure enables more decisive action with fewer stakeholders and regulatory requirements to consider.

IADS Notes: The approval of Nordstrom's privatisation in May 2025 marks a significant evolution in department store transformation strategies. The $6.25 billion deal comes after the company demonstrated strong performance in Q4 2024, with 4.7% comparable sales growth, validating the timing of the transition. The partnership with El Puerto de Liverpool, which reported 9.2% revenue growth to €10.06 billion in March 2025, brings together complementary retail expertise across North America. The deal's structure, combining rollover equity and $450 million in new asset-backed loans, reflects modern retail financing approaches, while the $24.25 per share price—though lower than the family's 2018 attempt at $50 per share—acknowledges current market realities in a sector whose market share has declined from 14% to 3% since 1993. This transaction represents a new model for retail transformation, balancing family control with international partnership and operational flexibility away from public market pressures.

Nordstrom shareholders approve privatisation deal