Nordstrom family members, including CEO Erik Nordstrom and president Pete Nordstrom, have offered to take the department store private for $3.8 billion.

The family group has partnered with Mexican retail company El Puerto de Liverpool to make the proposal, Retail Dive reported. The deal would be financed through a combination of “rollover equity and cash commitments by members of the Nordstrom family and Liverpool and $250 million in new bank financing”.

A special committee of the board, which includes Morgan Stanley & Co and Centerview Partners as financial advisors and Sidley Austin and Perkins Coie as legal counsel, is reviewing the offer. The Nordstrom family first pitched their interest in taking the company private in April.

According to GlobalData MD Neil Saunders, the lack of any real premium would, under normal circumstances, make the offer unattractive. 

“However, as a family-run firm, the dynamics are slightly different, and it will be up to an independent committee to determine whether this is in the best interests of the company and its investors,” Saunders said.

The involvement of El Puerto de Liverpool may also mean there is potential to push the price higher, he added.

The analyst said the offer comes as Nordstrom is recovering from a long period of poor performance, but the business remains one of two halves. 

“The department store division has various structural challenges, while the off-price Rack division is starting to produce some good growth. This mixed outlook will limit the amount any party is willing to pay,” he elaborated.