The founding family of Nordstrom Inc (NYSE:JWN) is reportedly considering a move to take the U.S. department store chain private, revisiting an attempt that failed six years ago, according to Reuters revealed on Tuesday.
For this potential deal, the company has engaged Morgan Stanley and Centerview Partners to connect with private equity firms and gauge their interest in participating.
“Given JWN’s current leverage profile and the recent focus on real estate ownership in our investor discussions regarding the department store sector, we believe the company’s owned real estate will likely be a key investor consideration,” analysts at Goldman Sachs said in a Tuesday note.
“Further, ultimate debt structure and interest burden will likely be a critical focus for investors given JWN’s weaker EBIT margin vs. pre-pandemic levels (FY24 EBIT margin guided 3.5% vs. FY17-19 margins >5%),” they added.
Goldman reiterated a Neutral rating on JWN and a price target of $18.