Nordstrom, Inc. (NYSE:JWN) stock took a hit today over concerns about a deal to go private running into trouble.
A recent report claims that the Nordstrom family has had trouble obtaining the funding that it will need to take the company private. The problem is the sheer amount of money that the deal will require, which could reach up to $10 billion.
Nordstrom, Inc.’s problems with going private likely has to do with lenders be cautious around retailers. The retail industry has been struggling lately and that isn’t instilling confidence in lenders. JWN is likely planning to restructure its business after going private.
The blow to JWN stock today comes despite its solid performance over the last few months. Despite still seeing sales slow alongside other retailers, Nordstrom, Inc. has managed to keep them from slipping quite as far as others, reports Bloomberg.
The problems that retailers are facing recently have resulted in negative effects for many companies. Vitamin World announced earlier this month that it has filed for Chapter 11 bankruptcy protection. Toys R Us is another retailer that has filed for bankruptcy recently.
Some retailers aren’t having to file bankruptcy, but they still have their own troubles to deal with. This includes Sears Holdings Corp (NASDAQ:SHLD) closing down several stores due to slowing sales. J C Penney Company Inc (NYSE:JCP) is another retailer that has been having trouble as the industry tries to compete with Amazon.com, Inc. (NASDAQ:AMZN) and other online retailers.
JWN stock was down 7% as of noon Monday.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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