Central Group and PIF align to reinforce the retailer’s standing in the European luxury market
The Public Investment Fund (PIF) of Saudi Arabia has acquired a 40% minority stake in luxury retailer Selfridges, overtaking the struggling Signa property company, previously controlled by Rene Benko. This follows Signa’s bankruptcy filing after Benko’s property empire faced financial difficulties.
In addition, Selfridges’ majority stakeholder, Central Group, has increased its stake to 60%. Specific terms of the deal remain undisclosed.
PIF, which already held a 10% stake in Selfridges, had proposed a cash bid of £1 million for a 40% share in the retailer. “We are pleased to be partnering with Central Group in Selfridges, one of Europe’s most iconic luxury department stores. This transaction allows Selfridges Group to build on its position as a premier retail destination,” said Turqi Al-Nowaiser, PIF’s deputy governor and head of international investments.
Tos Chirathivat, executive chairman and CEO of Central Group, emphasized that the partners are looking forward to “a new chapter of development and growth supported by the shared long-term vision of its shareholders.” He highlighted PIF’s successful global investment track record and noted that their expertise in luxury retail would benefit Selfridges.
The deal includes new investments from both Central Group and PIF to strengthen Selfridges Group’s financial position and support its future growth. The partnership is based on a shared vision and industry experience aimed at further establishing Selfridges as a leading luxury retail destination in Europe.
Signa originally purchased Selfridges jointly with Central Group but encountered financial struggles, leading Central to acquire a larger stake and seek new investors. The luxury retail market has seen a decline in demand, affecting Selfridges significantly. In May, reports indicated that Selfridges was considering reducing its workforce by 2%, cutting approximately 70 roles.
Outgoing Selfridges CEO Andrew Keith attributed the workforce reductions to “market conditions and the evolving needs of our customers.”
Selfridges Group operates 18 luxury department stores across three countries, including Selfridges in the UK, De Bijenkorf in the Netherlands, and Brown Thomas and Arnotts in Ireland, with flagship locations on London’s Oxford Street and in Manchester’s Exchange Square.
