Selfridges is being circled by Middle East and Chinese investors as the financial troubles of the department store’s Austrian co-owner Signa spark an ownership battle.
Fellow co-owner, Thai conglomerate Central Group, wants to buy out Signa’s remaining stake in the department store chain with another partner and is in talks with several sovereign wealth funds and tycoons about a potential partnership, the Times reports.
Both Saudi Arabia’s Public Investment Fund, which supported Signa’s Selfridges bid, and Gucci owner Kering are considering acquiring a stake in the luxury retailer.
The newspaper reports that the Qatar Investment Authority (QIA), owner of department store chain Harrods may also renew their interest in Selfridges.
It previously sought to acquire the retailer when the Weston family put it up for sale in 2021.
Industry insiders ruled out backing from the likes of the London branch of Bangkok Bank, which provided a loan of £1.7bn that is secured against the freehold of Selfridges’ store in the West End.
Sources told The Times that Central was well resourced and not reliant on funding, instead preferring joint ventures with other companies so it can “leverage [its] capabilities”.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Selfridges was snapped up Signa and Central in 2021 for £4bn, with the business split between an operating company and a property company.
But Signa called in restructuring experts in November before filing for insolvency amid a cash crunch, bringing the future ownership structure of the department store into doubt.
Following Signa’s turmoil, Central moved to seize control of the operating business, converting a £317m loan into a majority stake in the retailer.
Despite the move, Signa still owns 50% of the property company and holds around 35% in the operating company.
Click here to sign up to Retail Gazette‘s free daily email newsletter
