Having crashed one month ago on abysmal numbers and ugly guidance, resulting in an even greater pile up of shorts in the luxury retailer, which most recently reportedly over 22% of the float was short, moments ago a million shorts cried out in terror and were suddenly silenced when Nordstrom announced it was exploring a going private transaction by the Nordstrom Family, sending the stock soaring over 20%.
According to the company, Nordstrom family members have formed group to explore pursuing going private transaction involving the acquisition of all outstanding shares. The group includes co-presidents Blake Nordstrom, Peter Nordstrom, and Erik Nordstrom; president of stores James Nordstrom; chairman emeritus Bruce Nordstrom; Anne Gittinger. So far, the group hasn’t made a formal proposal to company; concurrently the board has formed a special committee of independent directors to act on behalf of JWN. It has also hired Centerview Partners as financial advisor and Sidley Austin as legal counsel.
Here is the press release which made Thursday for thousands of retail shorts truly "Terrible."
Nordstrom Announces Exploration of Going Private Transaction by Nordstrom Family and Formation of Special Committee
SEATTLE, June 8, 2017 /PRNewswire/ -- Nordstrom, Inc. (NYSE: JWN) announced today that members of the Nordstrom family – Company Co-Presidents Blake W. Nordstrom, Peter E. Nordstrom, and Erik B. Nordstrom, President of Stores James F. Nordstrom, Chairman Emeritus Bruce A. Nordstrom, and Anne E. Gittinger – have formed a group (the "Group") to explore the possibility of pursuing a "going private transaction" involving the acquisition by the Group of 100% of the outstanding shares of common stock of the Company. The Group has not made a proposal to the Company regarding any such transaction.
The Company's board of directors has formed a special committee (the "Special Committee") comprised of the independent directors to act on behalf of the Company in connection with such exploration by the Nordstrom family and any possible transaction. The Special Committee has retained Centerview Partners LLC to serve as its financial advisor and Sidley Austin LLP to serve as its legal counsel.
No assurances can be given regarding the terms and details of any transaction, that any proposal will be made by the Group, that any proposal made by the Group regarding a proposed transaction will be accepted by the Special Committee, that definitive documentation relating to any such transaction will be executed, or that a transaction will be consummated in accordance with that documentation, if at all.
The rest of the retail sector is loving it with other key names jumping in the pre-mkt, including Macy's +3.9%; Kohl's up 3.2% and JCPenney +1.7%.