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<\/div>\nA major Selfridges shareholder has filed for insolvency after a last minute scramble to raise extra funds failed, just weeks after it sold some of its stake in the luxury retailer.<\/p>\n
Austrian firm Signa, which is owned by Rene Benko, made the filing today in Vienna, admitting it could not find the \u201cnecessary liquidity\u201d as it struggled with \u201csevere economic pressure\u201d.<\/p>\n
A statement, first published on the\u00a0Financial Times\u00a0read: \u201cDespite considerable efforts in recent weeks, the necessary liquidity for an out-of-court restructuring process could not be sufficiently secured.\u201d<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span>\u00a0<\/span><\/strong><\/p>\nThe company acquired Selfridges as part of a joint venture last year in a \u00a34bn joint deal with Thailand\u2019s Central Group which put roughly \u00a31.7bn in debt on the two firms.<\/p>\n
Benko\u2019s company had joint control of both Selfridges\u2019s property and operating companies until recently, but Central Group took majority ownership of the trading company earlier this month.<\/p>\n
In the same period, shareholders ousted Benko from his firm and he is now fighting for control over his \u00a320bn empire after suffering a\u00a0number of professional and personal setbacks including having his offices raided by the Austrian police.<\/p>\n
Benko has denied wrongdoing and was not charged.<\/p>\n
Signa still holds a 50% stake in Selfridges\u2019 property company, which controls sites including the its flagship Oxford Street store.<\/p>\n
It also still holds a minority stake in the Selfridges operating business.<\/p>\n
Restructuring experts are expected to look at offloading Signa\u2019s stakes in a drive to raise money, potentially meaning a new landlord for Selfridges\u2019 properties.<\/p>\n
A spokesman for Selfridges said it had the \u201congoing and unwavering support of Central Group\u201d, adding: \u201cThis does not change anything for Selfridges, we continue to operate and service our loans and lease obligations as normal. Selfridges trades independently from our shareholders.\u201d<\/p>\n
A spokesman for its Thai shareholder said: \u201cCentral Group remains steadfast in its commitment to safeguard and support its European luxury stores regardless of its partner\u2019s financial circumstances.\u201d It said it was in robust financial health and benefitted from \u201caccess to a wide range of funding streams to support the development of this unique portfolio\u201d.<\/p>\n
The company acquired Selfridges as part of a joint venture last year in a \u00a34bn joint deal with Thailand\u2019s Central Group which put roughly \u00a31.7bn in debt on the two firms.<\/p>\n
Benko\u2019s company had joint control of both Selfridges\u2019s property and operating companies until recently, but Central Group took majority ownership of the trading company earlier this month.<\/p>\n
In the same period, shareholders ousted Benko from his firm and he is now fighting for control over his \u00a320bn empire after suffering a\u00a0number of professional and personal setbacks including having his offices raided by the Austrian police.<\/p>\n
Benko has denied wrongdoing and was not charged.<\/p>\n
Signa still holds a 50% stake in Selfridges\u2019 property company, which controls sites including the its flagship Oxford Street store.<\/p>\n
It also still holds a minority stake in the Selfridges operating business.<\/p>\n
Restructuring experts are expected to look at offloading Signa\u2019s stakes in a drive to raise money, potentially meaning a new landlord for Selfridges\u2019 properties.<\/p>\n
A spokesman for Selfridges said it had the \u201congoing and unwavering support of Central Group\u201d, adding: \u201cThis does not change anything for Selfridges, we continue to operate and service our loans and lease obligations as normal. Selfridges trades independently from our shareholders.\u201d<\/p>\n
A spokesman for its Thai shareholder said: \u201cCentral Group remains steadfast in its commitment to safeguard and support its European luxury stores regardless of its partner\u2019s financial circumstances.\u201d It said it was in robust financial health and benefitted from \u201caccess to a wide range of funding streams to support the development of this unique portfolio\u201d.<\/p>\n