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Nordstrom Lenders Demanded Rate the Family Couldn't Pay

Foiled deal shows that the retail industry is toxic to creditors.

By Nabila Ahmed, Bloomberg | Updated on October 17, 2017

As the fourth generation of Nordstrom Inc.’s founding family spent the summer exploring the idea of taking the retailer private and scouting for financing, one thing was clear: It wouldn’t come cheap.

The family needed roughly $7 billion to fund the deal, and lenders demanded a steep interest rate, according to people with knowledge of the matter. After meeting at least nine different firms over the course of four months, the asking price came to about 13%, said the people, who requested not to be identified because the discussions were private.

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