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Nordstrom's stock drops on report that retailer's buyout talks are 'faltering'

  • The New York Post reported Sunday that Nordstrom hasn't been able to secure financing after the Toys R Us bankruptcy filing.
  • Shares of Nordstrom were down more than 7 percent.
Nordstrom Rack in downtown Seattle
Getty Images
Nordstrom Rack in downtown Seattle

Nordstrom's plan to go private is reportedly falling apart, sending the retailer's stock tumbling.

The New York Post reported Sunday, based on the publication's conversations with sources familiar with the situation, that the department store chain hasn't been able to secure financing after the Toys R Us bankruptcy filing.

Nordstrom's stock was down more than 7 percent midmorning Monday, making it the biggest loser in the S&P 500 Retail ETF (XRT).

Toys R Us has added "anxiety" to the process, the Post said. Also, the Nordstrom family is reportedly worried a heavily leveraged deal could disrupt the company's turnaround plans and threaten the family's fortune, the publication added.

A representative from Nordstrom didn't immediately respond to CNBC's request for comment.

CNBC reported earlier this month that the Nordstrom family was nearing a deal with private equity firm Leonard Green in its bid to go private. This partnership was going to be key in providing necessary financing.

Leonard Green would provide the Nordstrom family members with roughly $1 billion in equity to help fund the deal, sources told CNBC at the time.

A representative from Leonard Green didn't immediately respond to CNBC's request for comment.

Meantime, in June Nordstrom appointed an independent special committee to evaluate any offers.

Nordstrom shares have fallen more than 8 percent this year.

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