Is the empire crumbling?
First Signa subsidiary in Germany apparently bankrupt
November 24, 2023, 6:11 p.m
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Cleaning up is clearly beginning in the Signa Group. According to a report, a first company has filed for bankruptcy. In addition, further steps of this kind will probably follow.
A subsidiary of Austrian investor Rene Benko’s ailing Signa Group has apparently filed for bankruptcy. Signa Real Estate Management Germany has filed an official application for bankruptcy with the Charlottenburg District Court, reported “Spiegel”. It is a subsidiary of Signa Prime Selection, in which Signa has bundled prestigious properties, such as the luxury department store KadeWe in Berlin as well as the Alsterhaus in Hamburg and the Oberpollinger in Munich. “Spiegel” had previously reported that Signa was preparing insolvency applications for several parts of the company. There was no comment from Signa on this either.
According to insiders, Signa is suffering from liquidity problems. The group has come under pressure due to rapidly rising interest rates and skyrocketing construction costs. The German department store giant Galeria also belongs to the extensive Signa empire.
The company empire Signa Group, which has fallen into difficulties, wants to present a restructuring plan by the end of the month following the withdrawal of founder Benko. “The aim is to develop a plan for the essential steps of the restructuring and present it to the shareholders by the end of November,” said Arndt Geiwitz, chairman of the advisory board responsible for the restructuring. “On the one hand, it is important to examine all areas of the Signa Group and, on the other hand, to find long-term solutions.”
The Austrian investor Benko withdrew from the company at the beginning of the month and handed over the chairmanship of Signa Holding’s advisory board to Geiwitz. The auditor and tax consultant, who became known as the insolvency administrator of the Schlecker drugstore group, also took over the chairmanship of the holding company’s shareholders’ committee and will represent the interests of the Benko family private foundation for the duration of the restructuring. The Signa Group announced that the duration of the restructuring cannot currently be estimated.