KaDeWe insolvency in focus
Berlin prosecutors investigate Signa companies
04.06.2024, 17:26
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Bankruptcy, breach of trust and subsidy fraud: After the Austrian company’s series of bankruptcies, the Signa Group is once again in the focus of the judiciary. The public prosecutor’s office in Berlin is now also investigating the insolvency of the KaDeWe Group.
Following the collapse of the Signa Group of Tyrolean investor René Benko, the public prosecutor’s office in Berlin has also launched investigations. The prosecution announced that investigations are underway into the insolvency of the Berlin luxury department store KaDeWe, which formerly belonged to Signa.
Preliminary investigations into possible criminal investigations are also underway in connection with the insolvency of the Signa Group, which included almost 170 companies. “As part of this, documents are currently being examined – particularly with regard to allegations of bankruptcy, breach of trust and subsidy fraud,” the public prosecutor’s office said. It is still unclear which people are to be listed as suspects. The prosecutors did not want to comment on details, also in view of the ongoing investigations.
Three public prosecutors are investigating
In Germany, the Munich public prosecutor’s office is already investigating the multi-billion-euro Signa bankruptcy on suspicion of money laundering and possible insolvency offenses. The Munich prosecutors have stated that they are in contact with other German public prosecutors. The events surrounding the Signa Group have also brought prosecutors into action in Austria.
Signa, which operates in the retail and especially in the real estate business, has suffered the biggest bankruptcy in Austrian economic history. The Signa Group created by Benko included numerous properties in the best inner-city locations as well as the department store group Galeria Karstadt Kaufhof and the KaDeWe Group. Galeria is now to be sold to investors. The KaDeWe Group’s properties around the Berlin luxury department store went to the Thai Central Group, which is also taking over the operational business.
Until a few months ago, Benko was considered one of the richest Austrians. According to the US magazine “Forbes”, Benko’s value had reached a peak of 6 billion dollars (5.5 billion euros) in 2023. But in early December, “Forbes” removed him from its international billionaire list in view of Signa’s growing problems.