Selfridges has attracted interest from Saudi Arabia and Kering, the parent company of Gucci, as the financial troubles of the department store’s co-owner spark an ownership battle.
Both Saudi Arabia’s Public Investment Fund (PIF) and Kering are considering acquiring a stake in the luxury retailer, City sources told The Telegraph.
The collapse of Signa, the Austrian company that co-owns Selfridges’ property company, has sparked interest in the retailer’s ownership as as its shares become available for acquisition.
However sources said that the sale process is complicated due to the legal proceedings underway in Austria.
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It is understood that Selfridges’ other co-owner, Thailand’s Central Group, is seeking a new partner as the future of Signa looks increasingly uncertain.
Saudi Arabia’s Public Investment Fund (PIF) is one of the parties understood to be interested in Signa’s stake, which covers Selfridges’ retail brand and its lucrative real estate on Oxford Street.
Interested parties are believed to be waiting for a full outcome from Signa’s collapse before they formally declare an interest in the stake, which would be worth around £2bn.
Selfridges was snapped up Signa and Central in 2021 for £4bn, with the business split between an operating company and a property company.
Both had been jointly owned by the pair but Central moved to seize control of the operating business during the turmoil at Signa late last year, 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.
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