Selfridges ownership uncertain as co-owner faces cash crisis

The future ownership of Selfridges is said to be uncertain following reports that its co-owner Signa is facing a financial crisis, according to The Times. 

Restructuring experts have reportedly been called in to help the real estate company raise funds after it was hit by rising borrowing costs and falling property valuations. 

According to The Times, a sale of its 50pc stake in the London department store is “a probable result” as it looks to raise cash.  

Signa Group jointly acquired Selfridges alongside Central Group, a Thai conglomerate, in a £4bn deal that was finalised last year.

According to the Times, Central Group is now seen as the most likely buyer for the store. 

In a statement to Retail Sector, Selfridges said: “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.”

It comes as Signa shareholders reportedly sought to oust chairman René Benko last week after the cash crisis “threatened to topple” his €23bn (£20bn) property empire.

Elsewhere, the future of Signa has reportedly led to concerns over Frasers’ bid to acquire one of its subsidiaries, SportScheck, The Telegraph reported.

Frasers announced its intention to acquire the retailer last month in a deal with Signa, which had reportedly agreed to continue financing the business until the deal was complete.

However, the Telegraph said SportScheck’s future is now uncertain in light of Signa’s financial trouble, and administrators could be called in for the retailer as soon as Monday.

Signa and Frasers have been contacted for further comment.