Upmarket department store Selfridges has been put up for sale, with its owners looking for around £4bn having received an initial approach from a potential buyer.
The retailer was acquired by the Weston family for £598m in 2003. It has since expanded beyond its flagship on London’s Oxford Street to several stores across the UK, Ireland and the Netherlands.
Reports said that Credit Suisse has been appointed as an adviser after an unsolicited approach, which is at an early stage and may not lead to a deal.
Brown Thomas and Arnotts, two of Ireland’s iconic department stores, are expected to be part of any potential transaction.
All parties involved have yet to comment.
Whilst most mass-market department store chains have struggled in recent years as more shopping moves online, Selfridges has managed to grow its appeal with its more affluent UK customers and overseas tourists by revamping its stores and product offer.
However, the business cut hundreds of jobs last summer as it navigated a downturn in trade during the pandemic. Reports suggested that the sale is linked to concerns that overseas tourism, especially from China and the Middle East, will take a long time to recover from the pandemic.
A source close to the Weston family told the Financial Times that a sale to a sovereign wealth fund or tycoon was more likely than a deal involving private equity.
NAM Implications:
- Still a past sell-by business model.
- And if the price is right…
- …anticipate a change of ownership.
- If private equity, anticipate a focus on financial performance with a five-year check-out.
- If sovereign wealth fund, same difference, only longer…
