“Suspicion of breach of duty”
Signa subsidiaries fire boss without notice
December 12, 2023, 1:39 a.m
The Signa Group is not only in massive financial difficulties, but now apparently also has personnel problems. Two subsidiaries are dismissing their previous boss Timo Herzberg with immediate effect. He is therefore suspected of having damaged the company.
There are personnel consequences in the ailing Signa company network of the Austrian investor Rene Benko. In extraordinary supervisory board meetings of Signa Prime Selection AG and Signa Development Selection AG, their previous boss Timo Herzberg was relieved of his functions with immediate effect, Signa announced. Herzberg was also given extraordinary notice of termination without notice with immediate effect.
“The reasons for the dismissals are an urgent suspicion of gross violations of duties as a board member,” explained Signa, without giving details. Erhard Grossnigg was appointed as spokesman for the board of directors in both companies at both meetings. He will continue the reorganization and restructuring steps for the two real estate companies and act in close coordination with the supervisory boards of these companies.
Supervisory board member Alfred Gusenbauer explained that the step would create further trust in the current situation. “The quality of the Signa Prime portfolio is excellent, and the development prospects of the development projects, which are located in top locations in German-speaking cities, are very good.”
The convoluted Signa Group is the biggest victim of the turbulence on the real estate market so far. In addition to increased interest rates, real estate companies are also facing higher construction costs and the lack of large real estate transactions. Signa Holding filed for insolvency in Vienna at the end of November.