Gucci owner Kering and Saudi Arabia PIF circle Selfridges

Selfridges has enticed interest from Saudi Arabia and Kering as the insolvency of the department store’s co-owner triggers a battle for the business.

Both Saudi Arabia’s Public Investment Fund (PIF) and Kering, the parent company of Gucci, are said to be interested in a stake in Selfridges, according to The Telegraph.

It follows the collapse of Signa Holding, the Austrian firm run by businessman Rene Benko that owns half of Selfridges’ property company, sparking interest in the retailer's ownership as its stake becomes available.

However, sources told the publication that the sale process is complicated due to the legal proceedings underway in Austria.

It is understood that Selfridges’ other co-owner, Thailand’s Central Group, is seeking a new partner as the future of Signa looks increasingly uncertain.

Interested parties are believed to be waiting for a full outcome from Signa’s collapse before they formally declare an interest in the stake, which would be worth around £2 billion.

"What Central is doing is watching its partner’s problems play out," one source said. "Sitting, watching to see how it breaks. Of course, it is naturally interested in seeing what happens because it is going to have a new partner. It’s between retailing dynasties and sovereign wealth funds."

The Selfridges Group was acquired by Central and Signa for £4 billion in August 2022, with the business separated between an operating company and a property company.

Both had been jointly owned by the two companies, but Central moved to take control of the operating business during the turmoil at Signa late last year, converting a £317 million loan into a majority stake in the retailer.

Despite this, Signa still owns 50% of the property company and holds around 35% of the operating company.