What: Nordstrom Inc. is planning to go private, leveraging the current low stock price to gain operational flexibility and avoid the pressures of quarterly financial reporting.

Why it is important: This strategic move could allow Nordstrom to focus on long-term growth and restructuring without the constant scrutiny of Wall Street, which often undervalues department stores. It could also prevent potential unwanted takeover bids and help the company implement transformative changes more effectively.

Nordstrom Inc. is once again attempting to go private after a previous failed attempt, now motivated by a significantly lower stock price. This move aims to provide the company with greater operational freedom and reduce the pressures and costs associated with public market scrutiny. By going private, Nordstrom can potentially achieve a higher valuation, avoid hostile takeovers, and invest in long-term strategies without immediate pressure for quarterly results. The plan involves significant restructuring and a focus on digital and off-price retail expansion, all while maintaining the company's reputation for quality and customer service. Despite the advantages, challenges remain, such as securing the necessary financing and managing the risks associated with increased debt.

Nordstrom's plan to go private: Opportunities and challenges