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 Selfridges, citing 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.

Sources said Signa's stake in Selfridges, which would be worth some £2bn, was available for acquisition as Central was seeking a new partner. Central, Selfridges and Kering declined to comment.

(c) 2024 City A.M., source Newspaper