Selfridges co-owner Signa reportedly in financial turmoil

One of the new co-owners of British department store Selfridges is believed to be facing financial difficulties amid the exit of its chairman and founder René Benko.

Austrian firm Signa Group, which bought Selfridges alongside Thailand-based Central Group in a four billion pound deal last year, is understood to be bringing in restructuring experts, casting doubt over its future with the luxury store chain.

Shareholders of the group ousted Benko as chairman, as reported by The Times, which initially published the news, a move that comes after the businessman faced an investigation last year over allegations of government corruption.

The media outlet noted that a sale of Signa’s stake in Selfridges could be a potential result.

There may also be more delays to a number of long-term projects Selfridges is currently undertaking, including that of the development of a hotel next to its Oxford Street flagship and an overhaul of its food hall.

A spokesman for the retailer told The TImes: “This does not change anything for Selfridges. Selfridges trades independently of any support from its shareholders. We are delighted to have the ongoing and unwavering support of Central Group.

“We are very focused and excited by the Christmas period and welcoming our customers into our stores for an exceptional experience.”

FashionUnited has reached out to Signa for comment.