Selfridges, the famous British department store, is now on the market for a minimum of £4 billion. The current owners, the billionaire Weston family, have yet to make an official announcement, but it has been reported that Credit Suisse advisers will soon initiate the auction process by sending out documents to potential buyers.
Although no formal bids have been made, two or three interested parties have already expressed their interest in acquiring Selfridges. The company operates a total of 25 stores worldwide, and its flagship store is situated on London’s Oxford Street. In addition to its UK locations, Selfridges also owns several luxury department stores in Ireland, the Netherlands, and Canada.
Despite its previous success, the COVID-19 pandemic has greatly impacted Selfridges, resulting in job cuts and financial difficulties. In June, news broke that an unidentified bidder had approached the Weston family regarding a potential sale. This development came as a surprise to many, as the Westons were not considered likely to sell the business. The family has a strong background in retail, with ownership of other well-known companies such as Fortnum & Mason, Primark, and Heal’s.
The Westons acquired Selfridges in 2003, surpassing competing offers with a purchase price of £598 million. The late W Galen Weston led the acquisition and became the company’s chairman. His daughter, Alannah Weston, currently holds the position of chairman. Sources cited by The Times speculate that W Galen Weston would have strongly opposed selling the business.
The identity of the initial bidder remains unknown, and there is speculation that sovereign wealth funds may be interested in acquiring Selfridges. One potential contender could be the Qatar Investment Authority, which already owns Harrods, another prestigious department store located in Knightsbridge. The Qatar Investment Authority acquired Harrods for £1.5 billion in 2010. Lane Crawford from Hong Kong has also been mentioned as a possible buyer.
The sale of Selfridges presents an intriguing opportunity for potential investors in the retail industry. With its renowned reputation, global presence, and portfolio of luxury department stores, the business is likely to attract significant interest. As the auction process progresses, it remains to be seen who will emerge as the new owner of this iconic British institution.
Useful links:
– Official Selfridges Website
– Official Harrods Website
