Saudi Arabia and Gucci owner reportedly eye up £2bn stake in Selfridges

Saudi Arabia and luxury goods giant Kering are reportedly eyeing up a £2bn stake in Selfridges as the department store chain’s co-owner faces insolvency.

The Telegraph reported that Saudi Arabia’s Public Investment Fund (PIF) and Kering, which is the parent company of Gucci, are considering acquiring a stake in the retailer, citing unnamed City sources.

Selfridges’ ownership has become the subject of interest since the collapse of its Austrian co-owner Signa. Shareholders ousted the real estate company’s billionaire owner René Benko last November, with the firm filing for insolvency later that month.

Signa and Central Group, a Thai multinational, bought Selfridges in a £4bn deal in 2021, splitting up the company into an operating and property business. Signa owns 50 per cent of the property company and some 35 per cent of the operating company, including Selfridges’ retail brand and prime real estate on Oxford Street.

Both parts of the business had been jointly owned by Signa and Central, but Central converted a £317m loan into a majority stake in Selfridges late last year.

Sources said Signa’s stake in Selfridges, which would be worth some £2bn, was available for acquisition as Central was seeking a new partner, although the sale process was complicated by legal proceedings against Signa in Austria.

Saudi Arabia’s PIF privately backed Signa’s investment in Selfridges two years ago, meaning it could be a leading contender in any bidding process.

Kering, with a market capitalisation of €52.1bn, owns brands including Gucci, Balenciaga, Yves Saint Laurent and Alexander McQueen. In January, it bought the Fifth Avenue building housing its New York Gucci store for $963m.

The parties are understood to be waiting for the full outcome from Signa’s collapse before formally declaring an interest in its stake.

Central, Selfridges and Kering declined to comment. The PIF was approached for comment.