The £4bn acquisition of Selfridges by Thailand’s Central Group is being reconsidered as potentially overpriced, due to rising global interest rates.
- Tos Chirathivat, Central Group’s CEO, admitted the high cost in his first interview since the purchase, reflecting on current financial environments.
- Despite co-investor Signa Holding collapsing, Central remains committed to transforming Selfridges into a leading global store.
- Plans include a revamp of the Oxford Street flagship with André Maeder appointed as CEO to spearhead changes.
- Central Group faces challenges but is optimistic about long-term opportunities in luxury retail.
The £4 billion purchase of Selfridges by Thailand’s Central Group in 2021, along with other European luxury department stores, has come under scrutiny. Executive Chairman and CEO Tos Chirathivat acknowledged the financial burden of the acquisition in light of today’s rising global interest rates. “You would want the lowest price possible to buy something… is £4bn high? Yes, it’s high, especially in this environment,” Chirathivat explained during an interview, acknowledging the price seemed excessive in hindsight.
With the collapse of their partner, Signa Holding, towards the end of 2023, Central Group faced unexpected challenges. Signa’s dealings with the Public Investment Fund (PIF) of Saudi Arabia resulted in PIF acquiring a 40% stake, a decision that was disclosed to Central only after completion. Despite these setbacks, Chirathivat remains hopeful. He suggested the investment might prove more beneficial over the next decade. “Maybe 10 years from now it won’t be too high, but if you ask today, then of course it’s too high,” he added.
Central Group’s strategic vision for Selfridges involves substantial upgrades, particularly at its Oxford Street location. This revamp aims to enhance the shopping experience by expanding the range of products, services, and luxury brands available across the six-floor space. Chirathivat emphasized this goal: “The grand plan for Selfridges is to become the best store in the world. Right now, it’s probably in the top five.”
To implement this transformation, André Maeder was appointed as the CEO of Selfridges Group in May. This leadership change aims to drive the revamp and align with Central’s broader vision for luxury retail. Chirathivat expressed confidence in Maeder’s ability to enhance the store’s prestige, stating, “We can do a lot more.”
Central Group is steadfast in their commitment to realizing Selfridges’ potential as a world-class store, despite the high acquisition cost and associated challenges.
