On Tuesday, Nordstrom Inc reported adopting a ‘poison pill’ to prevent investors from amassing 10 per cent or more of its shares. The company said this just days after a Mexican retailer built a stake in the luxury department store chain.

Nordstrom (NYSE:JWN) stated that the shareholder rights plan has not been adopted in response to any takeover bid and is not intended to deter buyout offers. The said plan is going to expire in September next year. Last week, Liverpool, Mexican department store chain, disclosed a 9.9 per cent passive stake in Nordstrom in order to diversify its geographic foothold. Currently, Liverpool is the second-biggest shareholder, behind former Chairman Bruce Nordstrom. Chief Executive Officer (CEO) Erik Nordstrom and President Peter Nordstrom are among its major shareholders.

Poison pills make a takeover expensive or harder by allowing existing shareholders to purchase shares at a discount, diluting a suitor’s ownership stake.

Last month, Nordstrom joined department store peers Macy’s Inc (NYSE:M) and Kohl’s Corp (NYSE:KSS) in slashing its annual earnings forecast, reeling under an inventory glut that has forced retailers to offer steep discounts amid a decline in demand.

Founded by John W. Nordstrom and Carl F. Wallin in 1901, Nordstrom is an American luxury department store chain headquartered in Seattle. In the American market, its rivals include Bloomingdale’s, Macy’s, Neiman Marcus, and Saks Fifth Avenue.