Selfridges plays down £1.7bn debt concerns

LAURA MCGUIRE

THE OWNERS of Selfridges have said they are “very confident” about the outlook for this year as they sought to play down reported concerns that its debt pile, worth over £1.7bn, could cause problems for the luxury department store.

The Telegraph reported that the Thai and Austrian owners of Selfridges have laden the firm with over £1.7bn of debt since taking control of the store last autumn.

The Weston family agreed to sell Selfridges Group for around £4bn to a joint venture between Thai conglomerate Central Group and Austria’s Signa Holding in December 2021, which completed in August last year.

Company filings show that the London branch of Bangkok Bank provided a loan of £1.7bn that is “secured against the freehold of Selfridges flagship London store”.

The Telegraph also reported that a separate large loan, which has been redacted in the company’s filings, was also provided by Swiss lender EFG Bank and secured against Selfridges Exchange Square site in Manchester.

Selfridges refused to provide more details on the second loan when contacted by City A.M.

But it pushed back against suggestions that the debt was something to worry about.

“Selfridges enjoyed the best Christmas ever in 2022, and we remain very confident about 2023 and beyond,” a spokesperson for Selfridges told City A.M.

A source familiar with the matter told City A.M. that the loans were used to fund the acquisition of the store. “It was a fairly straight forwarded property charge, there’s nothing more to it than that,” the source said.

The group said order numbers tumbled nine per cent to 984m, with the last six months impacted in particular amid a consumer spending pullback.

Just Eat declined to comment on food shortages impact on orders. Shares dropped to close down two per cent yesterday.

City of London update

New era as City business hub moves to new home

Ahub which helps small businesses in the City of London act as ‘engines of growth’ is embarking on a new era as it moves to new premises.

The Small Business Research + Enterprise Centre, based in the City of London Corporation’s Guildhall headquarters, has now temporarily closed its doors.

The centre, which offers advice, support and a flexible workspace for SMEs, will move from its current location in Aldermanbury to a site on the east of the Guildhall complex, in Basinghall Street.

SBREC, which has around 2,500 members, plans to open in its new home in April. The new space will allow more events, networking and exhibitions to be held, details of which will be announced later in the year.

More information cityoflondon.gov.uk/sbrec

Pedestrians have priority

NEW traffic restrictions have been introduced on Chancery Lane in an experiment aimed at improving conditions for pedestrians.

It is now closed to through traffic from 7am to 7pm Monday to Friday as part of the City of London Corporation’s Pedestrian Priority Streets programme.

Black cabs are exempt, while other vehicles can use the street for access to properties and parking and loading bays. It follows similar measures introduced during lockdown.

People can find more information and give feedback on the 18-month experiment before a decision is made on whether to make the restrictions permanent.

www.cityoflondon.gov.uk/ pedestrianprioritychancery

NOT GOING UNDERGROUND London to be crippled by fresh tube strike on budget day

UNDERGROUND workers are set to walk out on 15 March, when Chancellor Jeremy Hunt will announce the government’s financial plans for the next year, amid a row over pensions, jobs and pay. It comes after Tube drivers with the Aslef union announced that they would strike that day.

ANNOUNCEMENTS LEGAL AND PUBLIC NOTICES