Selfridges seized by Thai retailer after debt crisis at co-owner

A Thai retailer has seized control of Selfridges after a key shareholder in the luxury department store was hit by a cash crunch.

Central Group said it has become Selfridges’ largest shareholder after converting a €364m (£317m) loan provided to the department store into equity.

The ownership of one of Britain’s best known retailers was plunged into doubt earlier this month after Signa investment group, which previously held a 50pc stake in Selfridges, became embroiled in financial turmoil.

Signa, which was founded by Rene Benko, the 46-year-old Austrian tycoon, also holds stakes in the Chrysler Building in New York and Berlin’s KaDeWe luxury department.

Selfridges was worth around £4bn when it was acquired by Signa and Central in 2021, suggesting Central’s stake has increased notably following the loan. Signa is expected to remain a significant minority shareholder.

It came as it emerged in company filings that Selfridges finance director, Matthew Smith, has stepped down after five years in the role.

He has taken up the same post at Inspired Education Group, the international private school company, following a career in retail.

Mr Smith has been replaced by Preetha McCann, a partner at the accountancy giant EY. She has previously held senior finance roles at John Lewis, Heathrow, WH Smith and Tesco.

Central said on Tuesday it had gained control of the joint venture for the operating companies within Selfridges Group, which also includes its historic department stores.

A spokesman for Selfridges said: “Selfridges trades independently of any support from its shareholders.”

It will bring an end to weeks of concerns that a battle could be brewing for control of Selfridges.

The Austrian property giant has been struggling with a cash crunch in recent weeks. Earlier this month, it drafted in restructuring experts to try to save the business from collapse and Mr Benko was forced out by shareholders.