In its effort to take the company private, Nordstrom has reportedly received interest from buyout equity firm Sycamore Partners to help in that effort, according to early reporting from Reuters, citing “people familiar with the matter.”
CEO Erik Nordstrom and his brother, company President Pete Nordstrom, confirmed last month that they were exploring options to take the company that bears their name private. (See SGB Media’s coverage below.)
Sycamore Partners, rumored in takeover bids for Macy’s, Inc. and JC Penney, acquired privately-held Belk Department Stores in 2015 in a $3.0 billion deal for the largest family-owned and operated department store in the U.S. at the time. In 2020, it was rumored that Sycamore Partners would merge JC Penney with Belk in the JCP effort.
In February 2021, Belk entered into a restructuring support agreement (RSA) with Sycamore Partners, with the holders of more than 75 percent of its first-lien term loan debt and holders of 100 percent of its second-lien term loan debt to reduce its debt by approximately $450 million.
As part of that deal, the retailer received financing commitments for $225 million in new capital from Sycamore Partners, investment firms KKR and Blackstone Credit, and certain existing first-lien term lenders. Under the RSA, members of an ad hoc crossover lender group led by KKR Credit, Blackstone Credit and other participating lenders will acquire minority ownership.
Belk, Inc. filed for bankruptcy protection “Pre-Packaged, One Day” reorganization. The plan called for the reduction of $450 million in debt from the department store’s balance sheet and a $225 million capital infusion, supplied by Belk lenders and its private-equity owner Sycamore. Sycamore remained the majority shareholder at the close of that deal.
Image courtesy Nordstrom Inc.
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For more SGB Media coverage, see below.
Nordstrom Family Members Look to Take Namesakes Retailer Private Again
