Selfridges starts formal auction as suitors circle

Advisor Credit Suisse is poised to distribute information memoranda to potential buyers and a deal, valuing Selfridges at as much as £4bn, may be completed by the end of the year The Times reported. 

The sale process follows an unsolicited approach to buy Selfridges, which emerged last month. It is understood that so far two or three parties have expressed interest in the famous retailer, which has 25 stores worldwide including its flagship on London’s Oxford Street.

Sovereign wealth funds are thought likely to be interested in Selfridges, and there has been speculation that luxury giant LVMH is also among potential buyers.

Some observers are suprised that the Westons may sell Selfridges at present. The Covid pandemic has hit footfall and sales in central London, and overseas tourists have not visited in the samre numbers as previously.

However despite the travails of department stores in general, reflected in the collapse of Debenhams and the need for a turnaround of John Lewis, many believe that landmark stores that offer engaging experiences as well as a wealth of product and high service standards, have a secure future as more normal conditions return.

In its most recently reported financial year, Selfridges Group’s holding company reproted that the pandemic “had a significant short-term impact on the group’s profitability” but it has “committed support from its ultimate parent company”.