Business

Nordstrom to Close Shop in Oregon

Nordstrom branch

Nordstrom announced its plans to close a full-line department store in Salem, Oregon. This action will be affecting 130 non-seasonal employees of the company.

The statement was made on Thursday following Nordstrom family members’ plans to resume efforts to go private later this year. But according to some sources, there are still challenges that the company has to go through. These challenges include gathering enough financial support to make the deal successful.

“The decision to close a store is never one we take lightly,” stated Nordstrom stores President Jamie Nordstrom. “Unfortunately, we don’t think investing in Salem Center is the best approach for us moving forward.”

According to Nordstrom, the company will be “focusing on how to bring those together in individual markets to give our customers a more convenient and seamless shopping experience.”

After closing its Salem store, Nordstrom will still have three full-line locations and six Rack stores in Oregon.

Nordstrom has a considerably smaller fleet of stores compared to its peers. This makes it more unlikely for the Seattle-based retailer to close stores.

The company has approximately 360 stores today. More than 200 of those are under the off-price, Nordstrom Rack banner.

The retailer is not the first one to announce store closures this year. Macy’s Sears and J.C. Penney already announced their plans to close more of their stores.

This is mostly attributed to the fact that more sales move online and away from brick-and-mortar stores. With this, retailers are looking to right-size their footprints and make physical locations more experiential and with lesser inventory.

Sears Acquires Additional Financing

Sears branch

Sears Holdings announced on Thursday that it was able to secure loans which totaled $210 million. The loans were from CEO Eddie Lampert’s fund ESL Investments and other parties.

The borrowing is made up of several installments.

Sears borrowed $100 million under a term loan facility on January 04. It then acquired an additional $30 million on January 13. This was then followed by another $20 million on January 29 and later secured a $60 million loan.

A report revealed that Sears laid off 220 employees on Wednesday. This mostly affected the company’s corporate headquarters in Hoffsman Estates, Illinois.

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