LONDON — Saudi Arabia’s Public Investment Fund, PIF, has taken a 40 percent stake in Selfridges, replacing Rene Benko’s troubled Signa property company as a significant minority investor.

Selfridges’ majority shareholder Central Group has increased its stake to 60 percent as part of the deal, the terms of which were not disclosed.

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Reports of PIF’s investment surfaced in the summer after Selfridges’ minority shareholder Signa filed for insolvency following the collapse of the holding company, and Benko’s property empire, last year.

At that time PIF already owned a 10 percent stake in Selfridges, and was offering a cash price of 1 million British pounds for a 40 percent stake in the retailer.

“We are pleased to be partnering with Central Group in Selfridges, one of Europe’s most iconic luxury department stores. This transaction allows Selfridges Group to build on its position as a premier retail destination,” said Turqi Al-Nowaiser, deputy governor and head of international investments division at PIF.

Tos Chirathivat, the executive chairman and chief executive officer of Central Group, said the partners are “ready to embark on a new chapter of development and growth supported by the shared long-term vision of its shareholders,” and argued that PIF was the right choice of investor.

“We are confident that PIF’s proven global track record of investments, combined with our luxury retail industry expertise, brand management skills and innovative approach, will allow Selfridges Group to continue to flourish for the benefit of all its stakeholders,” he added.

The deal includes new investment by both Central and PIF “to strengthen Selfridges Group’s financial position and support the group’s future development,” a statement from Central said.

The statement added that the new partnership is “built on the solid foundations of a shared vision, investment expertise and industry knowledge. It aims to amplify Selfridges Group’s potential, strengthening its position as one of Europe’s leading luxury retail destinations.”

When the reports of PIF’s interest in Selfridges first surfaced, Bernstein’s Luca Solca told WWD that “Selfridges has continued to improve its offer in the past 10 years, but its transformation away from a general department store is possibly still in progress. Having a solid shareholder committed to the long term will definitely help.”

In 2022, Signa purchased Selfridges in a 50/50 deal with Central Group, but hard times quickly followed. Signa, a property investor and developer, collapsed due to structural problems and a spike in interest rates, Central took majority stake in Selfridges, and then began hunting for another investor.

This was all happening against a backdrop of slowing luxury demand, which has hit Selfridges hard.

In May, WWD reported that the department store was planning to cut 2 percent of its headcount, or around 70 roles, in a challenging period for British retail.

Selfridges’ CEO Andrew Keith, who is stepping down this year, said the cuts were a response to “market conditions, and the evolving needs of our customers.”

Selfridges Group owns and operates 18 luxury department stores in three countries: Selfridges in the United Kingdom, De Bijenkorf in the Netherlands, and Brown Thomas and Arnotts in Ireland. The portfolio includes the iconic properties at Selfridges Oxford Street in London and Selfridges on Manchester’s Exchange Square.

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