The Mexican company El Puerto de Liverpool announced this Monday that it has signed a definitive agreement to acquire, in collaboration with the founding family, the U.S.-based department store chain Nordstrom.
If the transaction is completed, with closure expected by mid-2025, Liverpool will indirectly hold 49.9% of the capital stock of Nordstrom, while the Nordstrom family will retain 50.1%, according to a statement by the Mexican company.
The transaction involves an investment of up to $1.712 billion (approximately 34.53 billion pesos), financed through Liverpool’s own resources and external funding. The remainder will be covered by Nordstrom’s resources.
Why is Liverpool buying Nordstrom?
In September, the Nordstrom founding family, which at the time controlled 33.4% of the company, along with Liverpool, which held nearly 10%, made an offer to acquire shares of the U.S. department store chain at $23 per share, aiming to delist it from the New York Stock Exchange.
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In its first quarter 2024 earnings report, the company reported a net loss of $39 million, citing its loyalty rewards program as one of the factors contributing to the negative result.
Additionally, the company highlighted other factors, such as “external theft” in its transportation network and excess inventory in its supply chain, which also contributed to the loss during the period.
What does El Puerto de Liverpool do?
El Puerto de Liverpool, S.A.B. de C.V., along with its subsidiaries, operates a network of department stores offering a wide range of products, including clothing and accessories for men, women, and children, home goods, furniture, cosmetics, and other consumer goods.
How many stores does El Puerto de Liverpool have?
Currently, El Puerto de Liverpool operates more than 122 stores throughout Mexico.
What brands are part of El Puerto de Liverpool?
El Puerto de Liverpool, recognized as one of the most iconic companies in Mexico, has established itself as a leader in the management of department stores, shopping malls, and restaurants. With a national presence, the company has expanded its reach over time, integrating various brands and business lines that consolidate its position in the market.
The stores and brands it operates include:
- Liverpool
- Suburbia
- Boutiques: Gap, Banana Republic, Williams Sonoma, Pottery Barn, West Elm, Toys R Us, and Sfera.
- El Corte Inglés Travel Agency
- Inmobiliaria Galerías
Who owns Liverpool?
Max David Michel González became Chairman of Liverpool’s Board of Directors in 2016, inheriting the company after the passing of his father, Max Michel Suberville.
What is Nordstrom?
Founded in 1901, Nordstrom, Inc. is a leading fashion retailer specializing in clothing, footwear, and accessories for men, women, and children.
What does Nordstrom sell?
Nordstrom, Inc. offers customers products such as apparel, footwear, bedding, furniture, jewelry, beauty products, and home goods.
How many Nordstrom stores are there?
The department store chain currently operates a total of 116 stores in the United States and Canada.
What is the difference between Nordstrom Rack and Nordstrom?
Nordstrom Rack serves as Nordstrom’s discount store, where unsold or excess inventory from Nordstrom is sold. This explains why prices at Nordstrom Rack are significantly lower.
Since its inception in 1973, known as “The Rack”, the chain has grown to over 75 locations across the United States.