Struggling Seattle-based retailer Nordstrom Inc. has dropped a plan calling for family members to take a controlling interest in the company.
According to an Oct. 28 Form 8-K filing with the Securities and Exchange Commission, Co-presidents Pete and Erik Nordstrom and the board of directors have terminated a proposal that would have increased the brothers’ ownership of common stock from 31% to 50%. The proposal sparked rumors that the company would go private. Nordstrom became a public company in 1971.
The company recently created two new roles in the senior management team just months after the death of Blake Nordstrom, who died in January.
According to the filing, “the board has had discussions with the Pete and Erik Nordstrom around succession planning and the continued evolution of their and others’ management roles and responsibilities with the goal of ensuring that the company is well-positioned to execute on its strategic plan and develop senior management and leadership.”
Nordstrom, which recently opened its first flagship store in New York City for women and children, reported that sales dropped 5.1% in its fiscal second quarter. Company stock has plummeted almost 44% the past 12 months.
Nordstrom operates 249 off-price Rack stores and 120 full-line stores.