LONDON — Selfridges could finally be getting a boost after its minority shareholder Rene Benko’s troubled Signa property filed for insolvency following the collapse of the holding company in November 2023.

Saudi Arabia’s Public Investment Fund, which already has a 10 percent stake in the Selfridges properties, is offering a cash price of 1 million British pounds for a 40 percent stake in the retailer.

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The investment firm would be buying the stake from Signa, which purchased Selfridges in a 50/50 deal with Central Group in 2022, and now has a minority share in the U.K.-based department store group.

Central Group is keeping its 50 percent stake in Selfridges and currently has ownership of the operating business and its two sites, one on Oxford Street and the other in Manchester.

The boost from PIF could help Selfridges establish itself again among a Middle Eastern clientele that’s turning their eye to Harrods, which under Qatar Investment Authority has been turning a profit.

Bernstein’s Luca Solca wrote that “Harrods has been very focused on a top 0.1 percent strategy,” which means “taking care of the richest consumers living in or going through London.”

He praised Harrods consistency, from production selection to the services in its Knightsbridge store.

“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,” said Solca, adding that a new committed and solid shareholder will definitely help.

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.

According to a memo seen by WWD, Selfridges’ chief executive officer Andrew Keith told staff the proposed job cuts pertained to “specific head office functions,” and that store team members were not affected.

The cuts, he added, are a response to “market conditions, and the evolving needs of our customers.” The store said it hoped to offer “redeployment opportunities,” to a number of those impacted by the layoffs.

The memo added the continued absence of a tax-free shopping scheme in the U.K. “has significantly impacted international sales,” and that Selfridges was “responding decisively to changes we’re seeing from an international and digital perspective.”