Nordstrom family won't raise its stake in department store chain, shares fall

CNBC Finance 1 month ago

Nordstrom shares dipped on Monday after the department store chain said in a filing with the Securities and Exchange Commisson that the Nordstrom family won't increase its stake in the company.

Shares were falling more than 2% in after-hours trading, after initially losing more than 4%. The stock had closed Monday up 2.2%. Nordstrom shares have fallen more than 18% this year.

In an 8-K filing, the company said co-presidents Pete and Erik Nordstrom presented the board with a proposal that would have boosted their stake in the company from about 31% to a little over 50%.

"After due consideration by the Board, these discussions were terminated by the mutual agreement of the Co-Presidents and the independent directors," the filing said. 

Nordstrom also said Monday that its board has had talks with co-presidents Pete and Erik Nordstrom "around succession planning and the continued evolution of their and others' management roles and responsibilities."

Nordstrom has recently added two new positions to the management team — Teri Bariquit as chief merchandising officer and Ken Worzel as chief operating officier. 

The department store chain last week opened its first flagship store in Manhattan, which had been seven years in the making.

The company had tried to go private in 2017. As a private company, it would be free to  make more investments in the business without as much public scrutiny. But a special committee advising Nordstrom's board ended talks with the Nordstrom family in 2018, when the two parties weren't able to agree on a price.

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