Shares of Nordstrom are down 7.32% on Monday as the company’s plan to go private has struggled to come together, according to a report from the New York Post.
Nordstrom previously said it was exploring the possibility of going private amid struggling sales numbers. But, the deal started to unravel after Toys R Us filed for bankruptcy, according to the Post’s story.
The bankruptcy apparently caused the banks who would fund the deal to ask for more onerous terms because of increased risks.
The retail sector has been in a sort-of apocalypse recently as well, and the upcoming holiday season is not expected to be a good one for brick-and-mortar retailers, which adds to the perceived risk.
Nordstrom has fared better than some of its competitors though. The company’s off-price store, Nordstrom Rack, has been performing well, and there are currently more Rack stores than the traditional department stores.
Nordstrom shares are down 8.15% this year, including Monday’s drop.