​Saudi Arabia’s Public Investment Fund (PIF) has become the junior partner in Selfridges with the fund working with the retailer’s co-owner — Thailand’s Central Group — to buy out troubled partner Signa.

The sovereign wealth fund is buying the stake held by collapsed Aus­trian conglomerate Signa with the deal meaning that Central will own 60% of the operating and property businesses and Saudi Arabia 40%.

It comes after the 2021 purchase of Selfridges on a 50-50 basis by Central and Signa for £4 billion was followed by Signa running into trouble.

This culminated in it filing for insolvency almost a year ago. Last year, that led to Central converting a loan to Selfrdiges into an equity stake and becoming the majority owner as speculation about who would take on the remaining sizeable stake mounted. 

But PIF was always the frontrunner and before the latest deal, it had already taken a 10% stake having been a private financial backer of Signa in the original purchase of the business.

Central executive chairman and CEO Tos Chirathivat said PIF was its “partner of choice”. The giant retail group also said the deal comes with both parties pumping new investment into the business to “strengthen Selfridges Group’s financial position and support the group’s future development”. Reports suggested the investment is linked to cutting the property portfolio’s debt levels.

The Saudi wealth fund is a major investor in the UK already, also controlling football club Newcastle United and having stakes in Heathrow Airport and Sir Rocco Forte’s luxury hotels group.

While Selfridges is best known for its Oxford Street, London, department store but actually operates 18 such stores, including three other Selfridges branches in the UK. It also owns De Bijenkorf in the Netherlands and Brown Thomas and Arnotts in Ireland.