Nordstrom bet on Canada — nine years later it filed for creditor protection and left

In September 2012 Nordstrom announced its first expansion outside the United States: Canada. The first store opened in Calgary in September 2014, and over the next few years the chain grew to six full-line Nordstrom stores and seven Nordstrom Rack locations across the country.

The Canadian operation never reached profitability. On 28 February 2023, after what the board called 'a thorough and exhaustive review process' and consideration of 'all reasonably available options', Nordstrom's board determined it was in the best interests of stakeholders to discontinue further financial and operational support for the Canadian subsidiaries. The company stated it did 'not see a realistic path to profitability for the Canadian business.'

On 2 March 2023, Nordstrom Canada Retail, Inc. and certain subsidiaries filed for protection under the Companies' Creditors Arrangement Act (CCAA) with the Ontario Superior Court of Justice in Toronto. Nordstrom expected pre-tax charges of approximately $300 million to $350 million in the first quarter of 2023, the substantial majority of which were non-cash, including impairment of the Nordstrom Canada investment. Roughly 2,500 employees were affected. All Rack stores closed by 14 May 2023 and all full-line stores by 13 June 2023.