Selfridges co-owner Central Group has taken control of the luxury department store as fellow shareholder Signa Group battles with an ongoing cash crunch.
The Thai company said it had become the retailer’s largest shareholder in a £317m debt-for-equity deal that dilutes the stake of its struggling co-owner.
The ownership of Selfridges was thrown into doubt earlier this month after Signa called in restructuring experts to help it raise money.
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Central Group said on Tuesday that it had “exercised its right to convert a loan provided by one of its subsidiaries to the Selfridges group into equity”.
The move will see Central gain control of the joint-venture for the companies within the group, which comprises of the Selfridges department stores in the UK, Brown Thomas & Arnotts in Ireland, and De Bijenkorf in the Netherlands.
The escalating financial crisis at Signa has also left questions hanging over Frasers Group’s acquisition of Signa-owned German business SportScheck, as it’s understood the retailer is teetering on the brink of collapse.
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