What: The Nordstrom family is reportedly exploring another attempt to take Nordstrom Inc. private, working with Morgan Stanley and Centerview Partners to attract private equity interest. This follows a previous unsuccessful bid in 2018.

Why it is important: This move comes amidst a challenging retail environment, with department stores particularly under pressure. The potential buyout signals the Nordstrom family's belief in the company's undervalued stock and their commitment to its long-term potential, despite the complexities and financial challenges of such a transaction.

The Nordstrom family's reported exploration of taking Nordstrom Inc. private again has stirred the market, causing a notable jump in the company's stock price. However, funding this endeavour could be complex, given the high interest rates and the cautious stance of private equity towards retail investments. The company's recent performance shows some positive signs, but securing the necessary capital for a buyout, potentially over USD 2 billion, remains a formidable challenge. This scenario highlights the broader trends and difficulties facing the department store sector and the innovative strategies families and investors might pursue to navigate these challenges.

Funding another attempt to take Nordstrom private would be tricky