Thai conglomerate Central Group has acquired the iconic department store Selfridges in London. The acquisition was made after Central Group’s Austrian partner, Signa, experienced financial difficulties. The Chirathivat family, who own Central Group, converted a loan into equity to gain a majority stake in the joint-venture company. This deal also gives Central Group control over other department stores within the Selfridges group, including Brown Thomas and Arnotts in Ireland, and De Bijenkorf in the Netherlands.
The Thai-Austrian joint venture originally purchased Selfridges for £4 billion ($5 billion) approximately two years ago. Signa and Central Group also jointly own the Globus department stores in Switzerland and Germany’s KaDeWe.
Signa, owned by Austrian real estate tycoon Rene Benko, has faced financing difficulties recently and hired a restructuring expert. This has led investors to closely monitor Signa’s situation. The Selfridges deal came about after Central Group provided a loan of approximately €360 million ($391 million) to Signa in August.
Selfridges was founded in 1908 and is famous for its flagship store on London’s Oxford Street. The retailer has been owned by the Weston family of Canada in the past. The main value of Selfridges lies in its prime real estate in central London.
Despite challenges faced by the UK retail industry, including high inflation and rising vacancies on Oxford Street, Selfridges is still considered a prestigious asset. However, street crime levels have risen, which has deterred some shoppers. Central Group’s acquisition of Selfridges demonstrates its confidence in the long-term potential of the department store and its commitment to expanding its presence in the global retail market.
Useful links:
– Selfridges official website
– Central Group official website
