The Nordstrom family, in partnership with Mexican retailer El Puerto de Liverpool, has finalized a $6.25 billion deal to take the iconic department store chain private. The purchase, priced at $24.25 per share, values the company at a 40% premium over its March valuation. Following the deal, the family will hold 50.1% ownership, with Liverpool retaining 49.9%.

This move ends years of efforts by the Nordstrom family to take the company private. Analysts like Neil Saunders of GlobalData Retail argue this transition will allow Nordstrom to focus on long-term strategies without the pressure of quarterly public earnings. CEO Erik Nordstrom called it “an exciting new chapter” for the retailer.

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The company faces growing challenges, including declining sales and increasing competition from luxury rivals like Saks and Neiman Marcus, as well as off-price leaders like T.J. Maxx. While Nordstrom’s Rack chain showed growth, its core department store business lags.

To revitalize its stores and improve operations, Nordstrom plans to accelerate the expansion of Rack, with 24 new stores slated to open in 2024. The company also aims to refine its product mix and elevate customer experiences to regain its competitive edge.