Financial Crisis Hits Selfridges Co-Owner Signa

Selfridges, the iconic department store, could be up for sale as its co-owner Signa Group faces a financial crisis. Signa, which bought Selfridges with Thai conglomerate Central Group for £4bn last year, is seeking help from restructuring experts to raise money. There are speculations that Signa’s stake in Selfridges could be auctioned, with Central Group being the potential buyer. Signa and Central Group jointly own other department store businesses such as Rinascente in Italy and KaDeWe in Germany. Shareholders at Signa have attempted to remove chair René Benko. The company’s retail and property empire has been impacted by increasing borrowing costs and declining property values. The construction of the Elbtower in Hamburg, a €700m project, was halted due to Signa’s failure to pay contractors. The crisis at Signa escalated when a planned sale of the development project fell through. Additionally, there are concerns about Frasers Group’s acquisition of German business SportScheck from Signa, as the retailer is on the verge of collapse. Central Group has expressed its commitment to its luxury department stores. Selfridges has stated that the situation does not affect its operations and that it continues to trade independently. The store is looking forward to the Christmas period and providing customers with an exceptional experience.