Selfridges repossessed by Thai retailer after co-owner's debt crisis

The personal wealth of René Benko, co-founder of Signa, is estimated at approximately 6 billion euros. Photo: GEORG HOCHMUT/AFP < p>Mr Benko, who dropped out of school and made his first billion before he was 40, is responsible for Signa's development over the past 20 years. He reportedly likes to joke that only the Catholic Church and the British monarch have real estate portfolios similar to Signa's.

Earlier this year, Forbes estimated Mr. Benko's personal wealth at around 6 billion euros.

He has come under scrutiny in recent years over bribery allegations. Mr Benko had previously been found guilty of bribery and had previously been named by Austrian prosecutors as a suspect in a long-running investigation into political corruption. He denied wrongdoing and was acquitted by the court.

Industry sources told the Telegraph earlier this month that Selfridges could be one of the first assets Signa could offload in a sale, given its status as a leading retailer. in Britain.

Signa previously tried to sell the iconic Elbtower complex in Hamburg to one of its shareholders, but the deal fell through, leading to an escalation of the crisis within the company.

A Central Group spokesperson said: “This move strengthens Central Group as the owner-operator of Europe's largest luxury department store group, offering customers the best choice of brands, products and extraordinary experiences.”

The deal will ease concerns about Selfridges' mounting debt. Photo: Leah Tobey/Getty Images Europe

The deal means the Thai retailer will also gain control of other department stores including Brown Thomas & Arnotts in Ireland and De Bienkorf in the Netherlands.

It is also expected to help ease concerns about Selfridges' debts, which have been growing over the past year.

The Telegraph newspaper reported in February that the co-owners were stretching the company. it was left with even more debt after taking control in December 2021.

They borrowed through new trading and operating companies, meaning Selfridges was faced with a debt pile of more than £1.7bn . The two loans were secured by ownership of Selfridges' flagship London store and its Exchange Square site in Manchester.

A Selfridges spokesman said: “We welcome the stability of having Central Group as our majority shareholder. demonstrates their continued and unwavering support.»

Selfridges has recently struggled to cut costs at its company and unveiled plans to cut jobs in August.