Nordstrom closes Seattle-based headquarters due to Coronavirus pandemic

Nordstrom closes Seattle-based headquarters due to Coronavirus pandemic

  • Nordstrom temporarily closes its Seattle-headquarters on Coronavirus fears.
  • The department store chain had closed retail stores and suspended dividends in March.
  • The retailer is currently focusing on the bond market to raise £400 million.

As Seattle continues to post a sharp increase in Coronavirus cases, Nordstrom Inc. (NYSE.JWN) announced on Wednesday that its Seattle-based corporate headquarters will temporarily be shut down to minimize the fast spread of the flu-like virus and protect the employees against the health hazard.

The American luxury department store chain also warned on Wednesday that its financial performance in the first quarter and also in the upcoming quarters is likely to take a massive hit due to the ongoing pandemic.

Nordstrom Closed Its Countrywide Retail Stores In March

Nordstrom is in the list of retailers in the United States that have recently resorted to suspending dividends, closing countrywide stores, and placing the majority of its retail workforce on furlough. Nordstrom had also suspended its 2020 guidance in the second half of March and has reiterated that its furloughed employees will continue to receive pay and benefits.

Originally, Nordstrom had planned to resume business on April 5th. With the U.S having recorded more than 400,000 people infected with COVID-19 so far and over 13,000 deaths, the retailer is expected to further extend the shutdown until the health crisis is under control.

In line with its competitors, Nordstrom is currently committed to improving liquidity to survive the economic blow from the health emergency. The retailer also announced that it is focusing on the bond market to raise over £400 million. According to Refinitiv’s IFR (International Finance Review) publication on Wednesday, Nordstrom is seeking a new bond against a recently established property firm with £810 million to £890 million of assets in real estate.

Nordstrom Withdraws £645 Million From Its Credit Facility

The U.S luxury department store chain also reiterated that it has made a £645 million withdrawal from its credit facility.  

At the time of writing, Nordstrom is exchanging hands at £15.50 per share in the stock market that translates to a more than 50% decline in 2020 so far. Its performance before the outbreak, however, wasn’t reported any better with an annual loss of over 10% in 2019.

The retailer currently has a market cap of £2.42 billion and a price to earnings ratio of 6.05.

By Wajeeh Khan
Mr. Khan specialises in Public Health by academia but is a trader by passion. Taking up two new hobbies of writing and trading in his teen years, he is now a professional trader and news writer with over 5 years of experience in various financial markets. Khan is passionate about bringing insightful articles to his readers and hopes to add value to their portfolios.

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