Nordstrom Soars 20% After Announcing Exploration Of Going Private Transaction

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%.

Comments

NoDebt Thu, 06/08/2017 - 09:18 Permalink

"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%."And nobody even knows why.  Everyone expecting them to be taken private, too?  No, just because they see one of them go up, they bid up the rest of the sector as well.  

friendly manitoba Thu, 06/08/2017 - 09:23 Permalink

good move - shorting should be illegal - a slimey practise of brokerages selling other peoples stock ...

needs to be lots of new rules to eliminate shorting , options, and bundling crap

and please dont give me that bs that it makes for a good market - its creepy like scalping tickets

spastic_colon Seasmoke Thu, 06/08/2017 - 09:34 Permalink

heres how it works (remember tom petty cover of rolling stone ripping the dollar bill back in the early 80's?) the tickets are printed at face value....the corporate owned "scalping" companies buy them all.....they then re-sell them at inflated prices.....the owners of the scalping companies are the artists themselves and the record companies through their own LLC's.....fans are none the wiser.

In reply to by Seasmoke

Eagle40 spastic_colon Thu, 06/08/2017 - 10:54 Permalink

The reality is all of it is bad. Central banks, the Fed, Wall Street, and all the phony financial engineering tactics used to fuck the average Joe. Shorting, futures, buybacks, and other schemes have been created to take from many to give to the few. Deregulating the Glass Steadall Act by Slick Willie in 1996 was another way for banks to rid savings and force more into the sleezy environment of Wall Street. Same for 401ks. Get rid of pensions and force many to enter the markets. Wall Street gets richer with more fees and commissions while the average guy gets fucked. This also flooded the markets with tons of retail products the the elite dumps on when there are crashes. Markets need buyers and sellers. The more the better for the elites. All planned and corrupt. 

In reply to by spastic_colon

Blankenstein friendly manitoba Thu, 06/08/2017 - 10:53 Permalink

Well, you must be the recipient of a gooberment pension.  My family is not, and has to SAVE for retirement.  So you think we should buy stocks, bonds and real estate that are all extremely overpriced and have been overpriced for years; or treasuries, CDs and savings accounts that pay nothing?  That's great, just limit the choices for those savers who are aware and force them into money-losing alternatives.  Not only 1%ers short or use options.  

In reply to by friendly manitoba

Catullus Thu, 06/08/2017 - 09:25 Permalink

I went into Nordstrom on Saturday because of their semi-annual sale. Up to 40% off! Their clearance rack was 40% off. They still wanted $140 for a cotton polo shirt.

I see a lot of people milling about the store not buying anything. They're toast. And so are the malls they anchor.

MrBoompi Thu, 06/08/2017 - 09:27 Permalink

Yeah when you say you want to sell stock, they crash the price.  And when you say you want to buy stock, they inflate the price.  Better off keeping your mouth shut.  

BobBercy Thu, 06/08/2017 - 09:40 Permalink

Now they can quietly go bust in private.

What kind of premium are the "special committee" going to pay to the undisturbed price, not 20% I bet.

And how much debt are they going to load onto this PoS? They must be crazy. Leveraging a secular decline just takes you to zero more quickly.

Maybe they just want to lighten up their own holdings into the short covering!

Wrenching Away Thu, 06/08/2017 - 15:31 Permalink

I've met Blake Nordstrom and worked on a couple of his cars. Knew he was loaded, but didn't realize the family had enough money to consider going private. What's the valuation on outstanding shares right now?

ThanksIwillHav… Thu, 06/08/2017 - 10:20 Permalink

Who are these morons ruining department stores?  I would shop more in these stores but the help sucks, the selection sucks, and the sales tactics leave a bad taste in my  mouth.

yellowsub Thu, 06/08/2017 - 10:25 Permalink

Brick and mortar retail is dead...especially at their prices.  Better to cater to the less wealthy that's willing to put themselves into more debt...

Wrenching Away Thu, 06/08/2017 - 10:49 Permalink

Being a private company gives you a lot of choices that public companies can't make easily. If they go private, expect them to immediately start pulling the plug on money losing mall stores.

GRDguy Thu, 06/08/2017 - 12:34 Permalink

Going "private" simply means selling to an agent of The Great Red Dragon, for their thin-air money.Their "goal is to own the earth in fee-simple."These private plantations are simply growing larger until there's little left to bother with.

the cork Thu, 06/08/2017 - 19:40 Permalink

.I could give a shit about Nordstroms, I'm just happy to hearThe shorts got burned!Quick fried to a crackly crunch! .Damn parasites..Serves the miserable stinking turds right..