Erik and Pete Nordstrom are hoping to wrap up a little something special this holiday season — the company founded by their great-grandfather.
Sources said the Nordstrom family and El Puerto de Liverpool are close to signing a deal to buy Nordstrom Inc. and that an agreement could come together as early as this week.
If not, it’s understood that the process is being nudged toward a conclusion this year.
Nordstrom did not immediately respond to a WWD request for comment late Wednesday.
The family and the Mexican retailer offered to buy Nordstrom for $23 a share, or $3.8 billion, in September — seven years after the Nordstroms tried to buy the company at $50 a share and were rejected.
It’s not clear just how the latest offer has evolved in negotiations with a special committee of the company’s board. But the initial bid revealed this fall was financed by rollover equity and cash commitments from the family and Liverpool as well as $250 million in new bank financing. Debt already carried by Nordstrom was envisioned staying in place.
The combination of the Nordstroms and Liverpool would be difficult to outbid as the family owns about a third of the company’s stock and Liverpool holds a nearly 10 percent stake.
Erik Nordstrom leads the business as chief executive officer and his brother Peter is president and chief brand officer, but taking the business private would give them a chance to reset the department store away from the prying eyes of Wall Street.
The retailer has long been known for its customer service and savvy merchandising, but like other department stores is searching for just the right mix for today’s landscape.
For the nine months ended Nov. 2 the company posted $128 million in net profits as sales increased 4.3 percent to $10.4 billion.
Erik Nordstrom told analysts last month: “In the third quarter, our efforts to enhance the customer experience continue to resonate, enabling growth in net and comparable sales, margin expansion and an increase in our customer base.
“Both Nordstrom and Nordstrom Rack delivered 4 percent comparable sales growth. We’re particularly encouraged that our online business sustained its momentum with digital sales growth of over 6 percent. Customers responded to newness and our selection of the brands that matter most to them, driving positive total company net sales growth for the fourth consecutive quarter.”
The company is focusing on three priorities for the year — driving growth at the Nordstrom banner, optimizing operations and building on the momentum at the Rack.
“As an omnichannel retailer, we have to be prepared to serve customers when, where and how they want to shop, and service is always our number 1 priority,” the CEO said. “Our customers define what good service is, not us, and our teams are very focused on taking care of each and every customer who shop with us. We take this commitment to serving our customers seriously from the initial greeting, to providing assistance and a point of view at the fitting room, to completing the sale. For our customers that prefer to shop online, we aim to make the experience seamless and engaging through technology.”
For the full year, comparable sales growth is slated to rise by 1 to 2 percent.
