Selfridges, the UK-based department store, is seeking more cash from its Thai parent company after the collapse of key shareholder Signa.
Selfridges’ landmark Oxford Street location is owned by the retail behemoth’s property division, which said it was in “ongoing discussions” with Central Group regarding “the source, structure, and form of future financing.”
This coincides with Signa’s bankruptcy in Austria, which has put more financial strain on Selfridges.
In light of impending debt deadlines, Selfridges’ real estate division is looking for additional assistance. The company has until May 2024 to pay back a £27.3 million shareholder loan.
Accounts indicate that the loan may be extended or turned into equity; but, in the event that this is not the case, additional funding from Central will be required.
The British department store was divided into an operating business and a property firm after being acquired by Signa and Central for £4 billion last year.
Although it still shares ownership of the real estate division with Signa, Central has already taken over the majority of the running business of Selfridges.
Selfridges cautioned that Signa might not be able to continue supporting the group in accounts submitted this week.
The Oxford Street department store’s owner, Cambridge Properties Holding Limited, stated that negotiations with Central had not yet concluded and that there was therefore “significant uncertainty” regarding the suggested financial support.
