(Reuters) – Nordstrom Inc (NYSE:JWN) said on Monday its founding family had suspended attempts to take the upscale retailer private for the rest of the year due to difficulties in arranging funds for the deal ahead of the holiday season.
The company’s shares were down 5 percent in early trading, valuing it at about $6.7 billion.
Nordstrom said in June that the family group, which owns 31.2 percent of the storied retailer, was looking to take the company private as it struggled to compete amid an industry-wide slowdown.
A rapid rise in online shopping and slowing customer traffic at malls have hurt mall-based retailers, including Nordstrom.
The family had hired private equity firm Leonard Green & Partners to help take the retailer private, a source told Reuters last month and were seeking to raise $1 billion to $2 billion in equity.
Media reports earlier this month suggested the family was finding it difficult to shore up financing, especially after the surprise bankruptcy filing of retailer Toys ‘R’ Us that stoked fears of dwindling mall traffic among lenders. (http://nyp.st/2xJTFBL)