Sycamore may take Nordstrom private

New York-based private equity firm Sycamore Partners has set its sights on acquiring U.S. department store group Nordstrom, with plans to take it private.

Following discussions held by Nordstrom CEO Erik Nordstrom and President Pete Nordstrom with the chain's board last month, the company confirmed its exploration of the possibility of privatization. In a statement, Nordstrom expressed its commitment to enhancing shareholder value, emphasizing the ongoing evaluation of various strategic, financial, and operational alternatives to advance its strategic objectives.

Sycamore Partners has emerged as a key contender in the bid to privatize Nordstrom, a move envisaged to empower the chain with greater control and the ability to concentrate on sustainable long-term growth, free from the relentless scrutiny of public markets.

Negotiations, as reported by Reuters, are anticipated to span several weeks, with the outcome uncertain regarding Sycamore's bid or that of any other potential private equity suitors, including Sycamore's ownership of the regional U.S. department store operator Belk.

The news of the potential acquisition buoyed Nordstrom shares by 6 percent to 19.90 dollars during Thursday's afternoon trading session on the New York Stock Exchange, Reuters reported, underscoring investor confidence and pushing the company's market value to approximately 3.3 billion dollars.