Selfridges has recently said goodbye to its second finance chief in just four months, prompting concerns about the future of the luxury department store’s ownership.
Preetha McCann has reportedly resigned from her role as chief financial officer at Selfridges to pursue a new opportunity elsewhere, marking the departure of the second finance boss in the last four months. Back in November, it was revealed that McCann had joined Selfridges from professional services group EY, enticed by an offer she could not refuse. She had taken over the CFO role from Matthew Smith.
When contacted, Selfridges declined to comment on Ms. McCann’s exit. This development comes at a time of upheaval for Selfridges as it finds itself embroiled in an ownership dispute following the collapse of co-owner Rene Benko’s Signa. Bidders are reportedly eyeing the company amidst Central Group’s efforts to secure a new partner for the business, with Saudi Arabia’s Public Investment Fund among the interested parties.
Despite the ongoing turbulence, Selfridges has sought to downplay the impact of the situation, maintaining that there will be no disruption to the store’s operations. Sources close to the matter have stated that Ms. McCann’s departure is unrelated to the ongoing uncertainties surrounding the company.
Selfridges is segregated into a property business that oversees the stores, and a trading company. Central Group took control of the trading business last year to ensure the store’s stability, while bidding speculations have predominantly revolved around the property business. Signa still holds a 50% stake in the property business and an approximately 35% stake in the operating company.
This dilemma over ownership transpires as Selfridges strives to reverse its financial fortunes. The company has embarked on a cost-cutting initiative, announcing last August that it would reduce head office roles. Managing director Andrew Keith emphasized the need for the company to be “fit for the future, aligned and working in the most efficient way,” and acknowledged that this would entail resizing and reshaping some head office teams, including certain retail support teams.
According to its latest accounts, Selfridges Retail business incurred losses of nearly £40 million in the year ending January 2023.
As the departure of Selfridges’ second chief financial officer in four months casts a shadow over the store’s future, the company continues to confront uncertainties amid an ownership battle and ongoing efforts to counter financial setbacks.