Arnotts and BT owner turns to Asian parent for more cash

Selfridges, which also owns Arnotts and Brown Thomas, is asking its Asian parent for more cash.

The company that owns Selfridges, which includes Arnotts and Brown Thomas department stores, is asking its Asian parent Central Group for more cash due to the insolvency of its bankrupt minority owner Signa.

Cambridge Properties is in discussions with Thailand's Central Group for future financing to meet upcoming debt payments, according to accounts filed this week. The co-owner, Austria's Signa Prime Selection, filed for insolvency on Thursday. 

“Discussions are not yet finalised, and significant uncertainty therefore exists in relation to the financial support that the group will require,” the filing said.

The potential cash crunch at Selfridges is just one element of the fallout from the rapid collapse of the Signa empire. A loose alliance of property holdings, Signa holds stakes in a diverse range of assets including prime German retail projects and the iconic Chrysler Building in Manhattan. It also shows how some business partners may act on Signa’s troubles to help to keep co-investments afloat. 

Central Group bought Selfridges with Rene Benko’s Signa in 2022, and together they co-own the property as well as the operating business. Interest payments on the property company’s £2.2bn (€2.53bn) of debt have soared since, leaving it dependent on support from its owners. 

“This does not change anything for Selfridges," said a spokesperson for the department store. 

Selfridges trades independently from its shareholders. We are delighted to have the ongoing and unwavering support of Central Group.” 

The local managers of Arnotts and BT made similar comments in recent weeks. 

The Thai company stepped in to help with interest payments that came due in November, providing a shareholder loan note of £27.3m. That loan can be converted to equity when it comes due in May 2024. Central Group has already converted a similar shareholder loan to the operating side of the business to equity, allowing it to take a majority stake last month. 

Cambridge Properties Holding’s debt load includes two external bank loans held by subsidiaries, both of which are floating-rate and mature next year. It also has a £400m mezzanine loan facility provided by a company linked to Central Group. 

• Bloomberg and Irish Examiner