Central Retail Corporation (CRC), the retail arm of Thailand’s Central Group, said on Monday that it will not participate in the investment of Luxury British store chain Selfridges.
CRC chief executive Yol Phokasub reported to the Stock Exchange of Thailand that the board of directors held last week agreed to “decline to invest, whether in whole or in part, in the Selfridges Group.”
In December, Central and Austria’s Signa Holding announced that they would be buying Selfridges for around USD 5.36 billion. The agreement was signed by CRC’s major shareholder Harng Central Department Store (HCDS) Co., Ltd.
Yol explained that the consideration was based on business plans, performance, financial structure policy and other risks involved.
He added that the board believes that HCDS’s investment will allow CRC to benefit from the business connection, such as “leveraging relationships with world-class brands.”
Due to Covid-19 restrictions, CRC saw its retail and department store business adversely affected.
The company reported 46 million baht of net profit in 2020 and net loss of 2.3 billion baht in the first three quarters of 2021. It once recorded around 10 billion baht of profits per year pre-pandemic.
As of midday, CRC stocks traded at 33.75 baht, up 2.27 per cent from its prior closing.