Tos Chirathivat, co-owner of Selfridges, deemed the £4bn purchase price high.
- The 2021 acquisition included several European luxury stores besides Selfridges.
- Rising global interest rates have made the purchase price seem steeper.
- Central Group faces challenges, including a partner’s financial collapse.
- The company aims to enhance Selfridges into the world’s top department store.
In a recent revelation, Tos Chirathivat, the executive chairman and CEO of Thailand’s Central Group, acknowledged that the £4 billion price tag for acquiring Selfridges and additional European luxury department stores in 2021 was high. Amidst rising global interest rates, the financial burden of the purchase is increasingly apparent. Chirathivat remarked, “You would want the lowest price possible to buy something… is £4bn high? Yes, it’s high, especially in this environment.”
The acquisition not only included Selfridges but also brought De Bijenkorf in the Netherlands and Brown Thomas and Arnotts in Ireland under Central Group’s majority ownership. However, the purchase has not been without its difficulties. One significant challenge came with the collapse of Signa Holding, Central’s partner in the acquisition, at the end of 2023. Chirathivat disclosed that Central was unaware of Signa’s dealings with Saudi Arabia’s Public Investment Fund (PIF), which then increased its stake in the retailer to 40%. He stated, “He only told us later when it was done… that he sold part of it to the PIF.”
Despite these setbacks, Central Group remains committed to its vision for Selfridges. The focus is on revitalising the iconic Oxford Street store by adding new products, services, and more luxury brands. Currently, the group is enhancing the six-floor space, with Chirathivat noting, “We have three good floors [of six]… we are working to improve every area.” The long-term ambition is for Selfridges to become the best store in the world, a sentiment echoed by Chirathivat: “Right now, it’s probably in the top five.”
To spearhead this transformation, Central Group appointed André Maeder as the CEO of Selfridges Group in May. Chirathivat remains optimistic about Selfridges’ future and firmly believes in the company’s potential for growth, summarising, “We can do a lot more.”
The ambitious plans for Selfridges signal Central Group’s commitment to overcoming current challenges.
