Nordstrom Inc. (JWN:US), which is exploring a sale of its store-branded credit cards, has begun reaching out to potential buyers including Capital One Financial Corp. (COF:US) and Toronto-Dominion Bank to gauge their interest, according to people familiar with the matter.
The retailer has also approached Citigroup Inc. (C:US) and JPMorgan Chase & Co., the people said, asking not to be identified because the matter is not public. Nordstrom is informally canvassing buyers of the $2 billion portfolio of credit card receivables and hasn’t yet set a date to solicit initial offers, said one of the people.
Nordstrom, based in Seattle said on May 15 it was working with Goldman Sachs Group Inc. (GS:US) and Guggenheim Partners LLC to find a “financial partner” for its credit cards in the next 12 to 18 months. It follows Macy’s Inc. (M:US) and Target Corp. (TGT:US) in getting rid of store-branded card portfolios, which banks are interested in buying.
Dan Evans, a spokesman for Nordstrom, declined in an e-mail to elaborate on the company’s comments on May 15. Representatives for Capital One and JPMorgan didn’t immediately respond to requests for comment, while spokesmen for Citigroup, Toronto-Dominion and Goldman Sachs declined to comment.
Nordstrom’s portfolio could fetch at least $2 billion, or a price equal to the value of its outstanding receivables, one person said. It plans to reach out to other top issuers of credit cards and so-called private-label cards, one person said. Private-label cards are cards that a lender manages on behalf of a retailer or manufacturer.
Toronto-Dominion last year bought Target’s $5.9 billion credit card portfolio, while Capital One bought HSBC Holdings Plc’s store-branded cards in 2012.
To contact the reporter on this story: Matthew Monks in New York at email@example.com
To contact the editors responsible for this story: Mohammed Hadi at firstname.lastname@example.org Nick Turner