The increase in financial backing from the Saudi government is observed in the British retail establishment.
The Saudi Arabian Public Investment Fund (PIF) is set to buy a 40% stake in UK high-end retailer Selfridges, after Signa Group's collapse. As reported, PIF will be the investor. The rest, 60%, will remain with Signa's current partner, the Thai Central Group.
Selfridges operates a total of 18 stores across the UK, Ireland, and Netherlands. Like numerous other physical retailers, luxury department stores have had a tough time recently due to online shopping surge. The company originated in the UK in the early 1900s.
The exact investment figure by PIF in Selfridges remains undisclosed. In their late-2021 acquisition, Signa and Central Group paid around 4 billion pounds (roughly 4.8 billion euros) to the Canadian Weston family.
Central Group took over 60% ownership of Selfridges following Signa Holding's insolvency filing at the end of 2023. Factors like internal disputes, increasing interest rates, and high construction costs were considered as reasons.
In Germany, Central Group also owns the renowned luxury department store KaDeWe. After securing majority control in the KaDeWe group since 2015, they purchased the entire operational tasks of KaDeWe in Berlin, Alsterhaus in Hamburg, and Oberpollinger in Munich in June of this year.**
The State funds from the Saudi Arabian Public Investment Fund (PIF) will be used for the purchase of the 40% stake in Selfridges. The State funds will help PIF to become a significant shareholder in the UK high-end retailer.
