Signa ‘funding crisis’ raises questions for Frasers and Selfridges

The fashion giant confirmed the deal last month as part of its plan to “grow its presence in Germany, one of the biggest sports markets in Europe”.

Shortly after the deal was announced, SportScheck owner Signa Holding revealed it was “in the midst of a funding crisis” and had filed for insolvency for its Signa Sports division, The Telegraph reports.

The newspaper reported the German retail chain may “be at risk of calling in administrators” and management may need to call in administrators as early as this week.

Despite Signa agreeing to finance SportScheck until the transaction is completed, which is expected to be in January 2024, sources said suppliers were “hesitant to do business” with the retailer.

It is understood that Frasers is exploring if the deal can be rescued.

Separately, the future of department store Selfridges, which is co-owned by Signa, has also been “thrown into doubt” due to the “financial crisis”.

Shareholders in Signa, which jointly bought Selfridges last year in a deal worth £4bn, have reportedly driven out chair René Benko and the group is understood to have called in restructuring experts “to help it raise money”, as reported by The Times.

It has been reported that co-owner Central Group is seen as “the most likely buyer” if Signa is forced to sell its stake in the luxury department store.

A spokesperson for Selfridges said: “This does not change anything for Selfridges. Selfridges trades independently of any support from its shareholders.

“We are delighted to have the ongoing and unwavering support of Central Group. We are very focused and excited by the Christmas period and welcoming our customers into our stores for an exceptional experience.”