Selfridges’ £4bn acquisition is now viewed as overpriced by its co-owner, amid global economic shifts.
- The executive chairman of Central Group, Tos Chirathivat, admits the acquisition price was significant.
- Increased global interest rates have been a crucial factor in this reassessment.
- Central Group intends to revitalise Selfridges despite acknowledged challenges.
- Plans are underway to transform Selfridges into a leading global department store.
In a candid reflection, Tos Chirathivat, the executive chairman and CEO of Thailand’s Central Group, has acknowledged that the £4 billion price paid for the acquisition of Selfridges, alongside several other European luxury department stores, may have been excessive. This admission comes against the backdrop of rising global interest rates, which have significantly influenced the financial landscape since the purchase in 2021. Chirathivat remarked, ‘You would want the lowest price possible to buy something… is £4bn high? Yes, it’s high, especially in this environment.’ This insight underscores the challenges of navigating complex global economic conditions.
The acquisition, executed by Central Group in partnership with Signa Holding, has not been without its obstacles. In a surprising turn, Signa Holding collapsed at the end of 2023, revealing undisclosed dealings with Saudi Arabia’s Public Investment Fund (PIF). This transaction saw PIF’s stake in the retailer increase to 40%, a detail Chirathivat learned only post-facto, stating, ‘He only told us later when it was done… that he sold part of it to the PIF.’ Despite these difficulties, Central Group remains undeterred in its commitment to the retailer’s future.
The group has embarked on plans to revamp Selfridges, concentrating notably on its iconic Oxford Street flagship store. Chirathivat articulated a clear vision: ‘We have three good floors [of six]… we are working to improve every area.’ The objective is ambitious—to elevate Selfridges to arguably the finest store globally. To drive this initiative, André Maeder has been appointed CEO of Selfridges Group as of May, a move demonstrating the group’s proactive approach in steering the brand towards a reinvigorated future.
The foresight of Central Group to enhance Selfridges amid a challenging economic environment is a testament to their long-term strategic vision.
