Selfridges’ new owners reportedly rack up billion pound debt

The new owners of Selfridges are said to have racked up over 1.7 billion pounds of debt after they took over the luxury department store.

Thailand’s Central Group and Austria’s Signa Group formed a consortium to acquire the retailer in August 2022, however following the takeover, the firm was said to have added the debt to its balance sheet.

According to The Telegraph, loans were made via a number of new trading properties after the acquisition, with the 1.7 billion pound loan provided by the Bangkok Bank secured for the freehold of Selfridges’ Oxford Street flagship.

The retailer reportedly said the loan was used to “release capital” for the acquisition, but that it wasn’t equivalent to the payment of a dividend to the new owners.

Additionally, another big loan was also said to have been secured against Selfridges’ Exchange Square location in Manchester, however the amount of that loan is not yet known.

A spokesman for Selfridges told the publication: “Selfridges enjoyed the best Christmas ever in 2022, and we remain very confident about 2023 and beyond.

“Our operating environment is unique because customers come to Selfridges for the experience and the pleasure our stores, including digital, offer.”

Selfridges’ previous owner, the Weston family, sold the luxury retailer to Central Group in a deal that was said to have been worth four billion pounds.