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A potential offer by members of the Nordstrom family to take back ownership of its namesake department-store chain has been rejected by members of the company's board of directors.

In a statement Monday, a special board committee said that it had been made aware of an offer from a group comprised of  several members of the Nordstrom family, including company co-presidents, Peter Nordstrom, Blake Nordstrom, and stores president James Nordstrom,

But the committee said that the price the group wants to pay isn't good enough, and so the tentative purchase proposal was rejected.

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It said in a statement that it "determined that the price proposed is inadequate.'' 

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On Monday, Nordstrom, Inc. said its founding family had decided to suspend steps to make the upscale retail company private for at least the rest of 2017. USA TODAY

The committee says that it has told its advisers to not give "further due diligence'' to the Nordstrom family members seeking the deal. "Furthermore, unless the group can promptly and substantially improve the price it is proposing to pay for the company, the special committee intends to terminate discussions,'' the statement said. 

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The family of one of the biggest retailers in the country is considering making a big change. Time

 

Nordstrom family members seeking to take the company private were prepared to offer to buy all of the company's outstanding shares of common stock that they didn't currently own, plus roughly 21% of stock owned by relatives who are part of the potential investors group for $50 per share. 

The Nordstrom family has been considering taking the company private for at least the past several months. The company would have more freedom to try out new concepts without the constant scrutiny of investors and the pressure to deliver immediate financial returns.

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But the retailer said in October that such plans were on hold since financing was hard to find on the brink of the upcoming holiday season.

Then news came last week that Nordstrom’s holiday season was strong. The company reported record sales in 2017, yielding $15.1 billion in revenue, up from $14.4 billion the previous year.

Nordstrom shares closed Monday at $51.90, down $1.14 or 2.15%. In after-hours trading following the announcement, they were down another 2.7% to $50.50.

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