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Saudi Arabia’s Public Investor Fund (PIF) and Gucci owner Kering are reportedly considering a stake in luxury department store Selfridges as its co-owner continues to struggle with its financing, according to The Telegraph.
The outlet said that the collapse of Austrian co-owner Signa has left Thailand’s Central Group searching for a new partner but any deal could be complicated by legal proceedings in Austria.
It is thought that PIF could be in pole position due to its relationship to Signa having initially provided financing for its initial investment.
The Central Group and interested parties are said to be waiting for a full outcome regarding Signa’s collapse before moving on a potential deal, with a potential stake said to be valued around £2bn.
Last year, Selfridges revealed that losses at the company narrowed to £38.3m, down from £83.9m the previous year, as consumers made more trips to the department stores.
As a result, the company, which operates four stores in the UK and an online store, reported a 29% increase in revenues to £843.7m in the year to January 2023.
The retailer attributed this “robust” growth to strong footfall across its physical locations, particularly at its Oxford Street flagship in London, as well as its Exchange Square location in Manchester.
As the company’s net loss for the year narrowed, it benefited from an operating profit of £38.9m from a loss of £38.1m in 2022, according to documents filed with Companies House.
The improved figures followed a hard period for the luxury retailer. Due to lockdown restrictions and temporary suspension of international travel, Selfridges had been unable to trade to affluent tourists visiting brick-and-mortar stores.
Central Group and Signa acquired Selfridges in a £4bn deal back in August 2022.
