Family behind Nordstrom is looking to gain more stake in the department-store chain

  • Written by MarketWatch
  • Published in Economics

The family behind Nordstrom Inc. JWN, +8.67%[1]   is seeking to strengthen its grip on the department-store chain following a decline in its shares that has stoked tension on the board.

Members of the founding Nordstrom family are in the early stages of discussing a proposal to boost their roughly one-third stake to over 50%, according to people familiar with the matter. It isn’t clear how the family would increase its stake—one possibility is through a share buyback at a premium, one of the people said—and there is no guarantee it will follow through.

Should they, the family may encounter resistance: Some independent directors are wary of allowing the family to take advantage of the stock drop to increase its ownership when they blame its management for the decline, one of the people said.

The board has been seeking to bring in an outsider to replace the two great-grandsons of the founder, who have been serving as co-presidents, some of the people said.

An expanded version of this story appears on WSJ.com[2] ...

Popular stories on WSJ.com

References

  1. ^ JWN, +8.67% (www.marketwatch.com)
  2. ^ An expanded version of this story appears on WSJ.com (www.wsj.com)

Read more from our friends at MarketWatch

63°F

Philadelphia

Partly Cloudy

Humidity: 80%

Wind: 11.18 m/h

  • 18 Sep 2020 70°F 56°F
  • 19 Sep 2020 64°F 47°F