Selfridges, a department store chain founded in 1908, is a well-known shopping destination in London. Saudi Arabia’s Public Investment Fund (PIF) is set to acquire a minority stake in Selfridges, currently controlled by Thailand’s Central Group, after purchasing the position previously held by the insolvent Signa Group. The PIF will hold a 40% stake in both the property and operating businesses of Selfridges, while Central Group will own the remaining 60%. This partnership involves new investments from both parties to strengthen Selfridges’ financial position.
The agreement between PIF and Central Group comes after the collapse of Central’s former joint-venture partner, Signa Group, which is currently facing insolvency processes in Austria. The PIF’s acquisition of Signa’s interest in Selfridges marks a significant step in the restructuring of the department store chain’s ownership. Turqi Al-Nowaiser, deputy governor of PIF’s international investments division, expressed enthusiasm about the partnership, emphasizing Selfridges’ status as a premier retail destination in Europe.
In addition to Selfridges, Central Group has joint ventures with Signa in other retail businesses, such as the Swiss luxury department store chain Globus and the flagship store of KaDeWe in Berlin. The collapse of Signa has prompted Central to take over the operations of these businesses as part of its strategic realignment. The PIF already held a 10% stake in Selfridges’ properties prior to this transaction, further solidifying its position as an investor in the retail sector.
Selfridges, founded by Harry Gordon Selfridge, operates 18 department stores across three countries, including locations in the UK, the Netherlands, and Ireland. The chain is renowned for its flagship store on Oxford Street in London and its reputation as a leading luxury retail destination. A spokesperson for Selfridges welcomed the PIF as a new investor alongside Central Group, highlighting the strategic importance of this partnership for the future growth and development of the brand.
The collaboration between PIF and Central Group underscores the continued interest of sovereign wealth funds in high-profile retail investments. By joining forces, these two entities aim to enhance Selfridges’ position in the market and capitalize on the brand’s strong reputation among consumers. The transaction signifies a strategic move to strengthen Selfridges’ financial standing and expand its presence in the competitive retail landscape. As the retail industry continues to evolve, partnerships like this one are crucial for driving growth and innovation in the sector.