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The Nordstrom Family Struck A Deal To Take Their Namesake Department Store Chain Private. Here's How They Built Their Retail Empire.
Nordstrom is slated to become a private company in 2025, it said on Monday.
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- Nordstrom's founding family is taking the retail chain private with help from a Mexican retailer.
- Bruce Nordstrom, whose grandfather started the department store in 1901, died in May.
- Here's how Nordstrom grew from a single location in Seattle into a fashion empire.
The descendants of John W. Nordstrom are taking the eponymous department store chain private.
Nordstrom's great-grandsons Pete and Erik, who are now the company's President and CEO, respectively, are working with cousin Jamie Nordstrom, the company's chief merchandising officer, and Mexican retailer El Puerto de Liverpool to purchase the company at $24.25 per share, the group said on Monday. The deal gives Nordstrom an enterprise value of $6.25 billion and should be completed in the first half of 2025, the group said.
Earlier this year, Pete and Erik's father, Bruce, died at the age of 90 after a long career with the company.
The grandson of founder John W. Nordstrom, Bruce was instrumental in bringing the retailer to international prominence in a career that spanned four decades.
Here's how the Nordstroms built their empire from a single shoe store in Seattle to one of the biggest names in fashion retail.
Nordstrom was founded as a shoe store by John W. Nordstrom and Carl F. Wallin in Seattle in 1901.A Nordstrom sign showing the year the company started.
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Two decades later, the partners opened a second store in Seattle's University District.
John Nordstrom retired in 1928 and sold his share to his sons Everett and Elmer.A Portland, Oregon, Nordstrom store in 2015.
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Wallin retired soon after and sold his share of the company to the Nordstrom sons too. John's third son, Lloyd, later joined the team.
John Nordstrom's sons focused on expanding into women's clothing.Mannequins at a Nordstrom department store.
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Nordstrom purchased the Seattle-based clothing store Best's Apparel in 1963. Three years later, the company purchased a Portland, Oregon-based clothing store and began offering both shoes and apparel under the name Nordstrom Best. The company added men's and children's apparel in 1966.
In 1968, the three Nordstrom brothers handed the company over to the next generation.Bruce Nordstrom.
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Everett's son Bruce, Elmer's sons James and John, Lloyd's son-in-law Jack, and family friend Bob Bender became the new heads of the company. The third generation of Nordstrom chairmen took the company public in 1971, formally renaming it Nordstrom Inc.
The first Nordstrom Rack opened in the basement of the downtown Seattle store in 1973.A Nordstrom Rack location in New York.
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That same year, the company became the largest-volume fashion specialty store on the West Coast, with sales surpassing $100 million. The chain continued to expand throughout the next several decades.
In 1995, Nordstrom's third generation handed the reins over to the fourth.Blake, Pete, and Erik Nordstrom in 2007.
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The elder Nordstroms retired as co-chairmen, but remained on the Board of Directors, and Bruce's sons, Blake, Pete, and Erik, took over the company in 1995.
Bruce's oldest son Blake became co-president in 1995.Blake Nordstrom.
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Blake began working in the family business when he was about 11 years old. His first role with the company was in the stockroom, and he went on to hold many positions with the company, including merchandise buyer, regional manager, and then vice president in charge of stores in Washington and Alaska.
Erik Nordstrom worked for his older brother in various positions at the company as the two rose through the ranks together.Blake and Erik Nordstrom.
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"It was always the best working for my brother because he had more confidence in me and gave me more autonomy than anybody I had ever worked for," Erik Nordstrom said in his father's 2007 book, "Leave It Better Than You Found It."
Bruce returned as chairman in 2000, retiring for a second time in 2006.Bruce Nordstrom.
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Bruce and his sons were credited with turning the company around after several years of underperformance by non-family leadership.
Throughout the 2000s, Nordstrom partnered with fashion brands like Façonnable, Topshop, HauteLook, and Jeffery.A store display of Topshop apparel and accessories.
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In 2014, the company started expanding internationally. It opened stores in Canada and the US territory of Puerto Rico.
Nordstrom opened its first menswear-only store in 2018 and a flagship womenswear store in 2019.Nordstrom's menswear shop.
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The concept combined in-store services, such as tailoring, shoe shining, and food, with high-tech digital ordering and returns systems.
Blake died in 2019 at the age of 58, passing control of the company to his brothers.Blake Nordstrom at a Nordstrom Rack in 2018.
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"Blake was the best big brother, friend and mentor anyone could ever ask for," Pete and Erik Nordstrom said in a note to employees. "One of the things that brings us some comfort is that Blake's values, character and passion can still be reflected in what this company does — how we treat each other, our customers and our communities. Building on that is the best way we can think of to honor his legacy."
In April, Pete and Erik revealed that the company was exploring options to go private.Erik, left, and Pete Nordstrom in 2012.
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In regulatory filings, the brother said they had not yet received any financing commitments to complete such a deal.
In May, Bruce died at his home at the age of 90.Bruce Nordstrom in 2018.
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Nordstrom died on May 18.
"Our dad leaves a powerful legacy as a legendary business leader, a generous community citizen and a loyal friend," Pete and Erik said in a statement.
In December, Erik, Pete, and other Nordstrom family members reached a deal to take the company private.Erik Nordstrom in 2019.
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The deal with Mexican retailer El Puerto de Liverpool was developed over several months. Once completed, the Nordstrom descendants will own 50.1% of he department store chain, with the other 49.9% in the hands of Liverpool, Nordstrom said on Monday.
Jessica Tyler contributed to an earlier version of this story.
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