It’s no secret that brick and mortar retail outlets continue to struggle as online shopping becomes more mainstream. This trend has some analysts predicting that as many as 25 percent of existing shopping malls may close within the next 20 years. These difficult times have retailers searching for answers to bring customers back to stores.
Indeed, different retailers are taking approaches to this issue. Upscale retailer Nordstrom is considering taking the company private. According to a recent cnbc.com report, the retailer’s shares experienced an uptick when news of the company formed a special committee to consider such a deal.
A filing proposed by a contingent of high ranking members of the Nordstrom family indicated that they have formed an exploratory group to obtain insight into how a return to private management would affect the company and shareholders alike.
The story is an example of how experienced business law attorneys can assist companies grappling with questions about the direction of their companies. Skilled lawyers can help principals understand the legal issues they face and provide viable options to help them achieve their goals.
Of course, if Nordstrom decides to go private, decisions would have to be made regarding the buyback of shares. A new operating agreement would likely be forged and relationships (i.e. contracts) with suppliers would likely be revisited. All of these decisions would have legal implications, so a number of conversations with experienced legal counsel would be necessary.
It remains to be seen how Nordstrom will proceed. In the meantime, our attorneys stand ready to assist businesses with major decisions.
The preceding is not legal advice.