Selfridges, the esteemed department store, is becoming a focal point for acquisition interest from both Saudi Arabia and Kering, the conglomerate behind the luxury brand Gucci. The financial distress of Selfridges’ part-owner has triggered a race for its ownership stakes.
The Saudi Arabian Public Investment Fund (PIF) and Kering are among the entities rumored to be eyeing a portion of the luxury retailer, as per insiders in the financial sector.
The downfall of Signa, the Austrian firm that holds a 50% interest in Selfridges’ real estate division, has ignited a spark for its ownership rights.
With Signa teetering on the edge of insolvency, its shares in the high-end retailer are now on the market, although the sale is complex due to ongoing legal proceedings in Austria.
According to financial insiders, Selfridges is ripe for the taking, but the intricacies of the sale process are compounded by the legal situation surrounding Signa’s downfall.
Selfridges’ other co-owner, Thailand’s Central Group, is reportedly in the hunt for a new partner as Signa’s future is shrouded in uncertainty.
The PIF is said to be considering the acquisition of Signa’s stake, which spans not just the Selfridges retail brand but also its valuable real estate along Oxford Street.
Prospective buyers are expected to await the full fallout from Signa’s financial issues before making formal bids for the stake, potentially valued at approximately £2 billion.
In a 2021 deal, Signa and Central Group jointly acquired Selfridges for £4 billion, dividing the enterprise into separate operating and property entities.
Although both parties had shared ownership, Central Group gained the upper hand over the operating company amid Signa’s recent troubles by converting a £317 million loan into a controlling interest in the retailer.
Despite Central Group’s maneuver, Signa retains a 50% share of the property division and about a 35% stake in the operating company.