The iconic halls of Selfridges, a cornerstone of British luxury retail, are facing an uncertain future.

The insolvency of its co-owner, Signa Holding, has ignited a potential bidding war that could reshape the high-end shopping landscape, the Telegraph reported.

According to the news agency, Saudi Arabia's Public Investment Fund (PIF) has emerged as a frontrunner.

Previously a financial backer of Signa's 2021 acquisition of Selfridges, the PIF could leverage its existing stake.

This stake encompasses not only the prestigious Selfridges brand but also its prime real estate on London's coveted Oxford Street.

The PIF's recent foray into British acquisitions, including Newcastle United FC, underscores its ambitious investment strategy.

However, French luxury giant Kering (owner of Gucci and Balenciaga) presents a formidable challenge. Kering has been strategically expanding its retail footprint, recently acquiring the building housing its flagship New York Gucci store.

Adding Selfridges to its portfolio would grant it control over a well-established department store chain with a loyal customer base.

Central Group, Selfridges' remaining co-owner, holds the key. It will ultimately decide who acquires Signa's stake, estimated at £2bn ($2.55bn).

According to the Telegraph, Central Group is carefully navigating this situation, waiting for the dust to settle around Signa's insolvency before engaging with potential buyers.

Despite the ownership turmoil, Selfridges strives to maintain a sense of normalcy, emphasising its operational independence.

However, the situation casts a long shadow. The company has embarked on cost-cutting measures, including job reductions at its head office, to address rising debt and higher operational costs.

The coming months will be pivotal for Selfridges. This high-profile ownership battle presents an opportunity for a major player to acquire a crown jewel of British luxury retail, complete with a prime real estate portfolio.