Selfridges could be put up for sale as co-owner Signa Group faces a cash crunch.
Signa, which jointly bought Selfridges with Thai conglomerate Central Group for £4bn last year, has called in restructuring experts to help it raise money as it finds itself engulfed in a financial crisis.
It is thought that its stake in the department store could be auctioned with fellow co-owner Central seen as the most likely buyer, according to The Sunday Times.
Signa and Central jointly own a host of department store businesses including Rinascente in Italy and KaDeWe in Germany.
Shareholders at Signa last week sought to oust chair René Benko.
The retail and property empire, which had been on a rapid expansion spree, has been hit by rising borrowing costs and falling property valuations.
Construction of the €700m Elbtower in Hamburg, what is set to be Germany’s third-tallest building, stopped last month after Signa failed to pay contractors.
It had planned to sell the development project to one of its shareholders, however the deal collapsed, escalating the crisis at Signa.
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There are also questions hanging over Frasers Group’s acquisition of German business SportScheck from Signa, as its understood the retailer is teetering on the brink of collapse.
Central told The Sunday Times it remained committed to “all of its luxury department stores”.
Selfridges told the newspaper: “This does not change anything for Selfridges. Selfridges trades independently of any support from its shareholders.
“We are delighted to have the ongoing and unwavering support of Central Group. We are very focused and excited by the Christmas period and welcoming our customers into our stores for an exceptional experience”.
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