Selfridges, the iconic UK department store, is reportedly being put up for sale by its current owners, the Weston family. The family, who owns the company through Wittington Investments, has received an offer from an undisclosed buyer and is now exploring their options. They are seeking around £4 billion for the business, which they purchased in 2003 for £598 million. Credit Suisse is said to be advising on the sale process.
It is uncertain whether the entire Selfridges group, which also includes Brown Thomas and Arnotts in Ireland, and De Bijenkorf in the Netherlands, will be sold. However, it is believed that discussions are focusing on the UK and Irish stores. React News revealed the news initially and stated that half of the £4 billion valuation would be attributed to the group’s real estate holdings, which consist of prime locations in prominent shopping districts.
Over the past 15 months, Selfridges has faced numerous challenges due to prolonged store closures and a decline in tourism caused by lockdown measures. As a result, the company has had to make significant job cuts. However, despite these obstacles, the group’s profits have more than doubled since the Weston family took over, and its sales have increased by over 80%. In the year before the pandemic, Selfridges reported sales of £1.97 billion.
The identity of the mystery bidder has not been disclosed, but it is likely that they are from outside of the UK. British luxury department stores have historically been attractive assets for international buyers, with Harrods, Harvey Nichols, and Liberty all currently being owned by international entities. Despite the challenges faced last year, Selfridges remains a highly sought-after retailer that draws both local and international customers when tourism is thriving.
The potential sale of Selfridges has come as a surprise to many, as the Weston family has been known for their long-term ownership of the business. However, the heavy reliance on international tourism, which may take some time to fully recover, could have influenced their decision to consider a sale. Insiders in the industry suggest that a sale to a sovereign wealth fund or a wealthy individual is more likely than a private equity takeover.
In summary, Selfridges, a renowned British retail institution, is reportedly up for sale as its owners evaluate their options in response to an offer from an undisclosed buyer. The Weston family is seeking £4 billion for the company, which encompasses Selfridges department stores and other luxury retailers. Despite the challenges faced during the pandemic, Selfridges remains a highly esteemed asset and a sought-after destination for shoppers worldwide. The sale process is being guided by Credit Suisse, and it remains to be seen whether an agreement will be reached.
Useful links:
1. Reuters: Selfridges holds talks on sale, which could value chain at £4 billion – React News
2. BBC: Selfridges up for sale in £4bn deal
