DIE NEUESTEN ENTWICKLUNGEN - Signa-Insolvenz: Zweieinhalb Jahre Haft für René Benko

René Benko, an Austrian investor, is currently serving a two-and-a-half-year prison sentence for the collapse of the Signa holding company. The company, which was once a massive empire in real estate and retail, went bankrupt in late 2023. Glorious claims of around 40 billion euros in debts were registered by the creditors. The Signa group is a complex entity consisting of various real estate firms and department store chains.

Department store subsidiary Galeria had already gone through insolvency twice between 2020 and 2022, while the real estate divisions of Signa entered crisis mode in the autumn of 2023 due to rising interest rates. These increased interest rates made financing numerous construction projects more expensive for Signa, and existing property valuations had to be corrected downward.

By October 2023, it became clear that the Signa group was in a dire financial situation, with numerous construction projects coming to a halt due to unpaid bills. Despite seeking investors for the most urgent capital need until November 2023, no one came forward, leading to a succession of insolvency filings for different Signa companies.

By November 2023, the Signa Holding filed for a restructuring procedure at the Vienna Commercial Court. By the end of 2023, the two main real estate companies, Signa Prime and Signa Development, sought a restructuring procedure with self-administration. This means that while the existing management continues to run the company, the insolvency administrator reviews expenses and has the final say.

A "restructuring plan" is required, which must be approved by the majority of creditors within 90 days. All three companies are now under liquidation proceedings. Signa Holding already went bankrupt in April 2024. By early November, Signa Prime had to switch to a regular liquidation process after the Austrian Financial Prosecutor objected, hoping for more transparency.

Finally, Signa Development lost self-administration at the end of 2024. The companies began selling off their assets, with Signa Prime selling its entire property portfolio. Prominent objects like the Tyrol department store in Innsbruck and the Berlin KaDeWe property have since changed ownership. Some of the previously made sales have raised questions about the prices obtained and the buyers involved.

Several of these were longstanding associates of René Benko. The collapse of the Signa group also put the future of Globus, which was half-owned by the Austrians, at risk. However, the future is now secure. In September 2024, the Thai Central Group announced that they would take over the operational business of Globus entirely. The Central Group already possessed half of Globus' retail business and real estate.

Despite the uncertainty, Globus continued its operations normally throughout the phase, including the renovation and investment plans, as confirmed by involved individuals. Galeria Karstadt Kaufhof (GKK) also remained operational. In June 2024, the company was sold to a consortium of two investors: the investment company NRDC led by Canadian businessman Richard Baker and the investment firm BB Kapital SA of German entrepreneur Bernd Beetz, a former head of the cosmetics company Coty.

Earlier in 2023, the Thais had bought half of Globus' retail business and real estate. They had also confirmed their support for the European luxury retail business earlier. Galeria Karstadt Kaufhof remained in business. The Signa group had previously tried to find new funds in March 2023, selling half of the KaDeWe property in Berlin to the Thai partners of the Central Group.

Additionally, Hamburg billionaire Klaus-Michael Kühne, who invested in the Signa Prime real estate company but not at the holding level, took over a office complex called Beam from Signa. Signa also separated from retail-related investments. In 2023, both the Signa Home & Lifestyle division with the furniture store Kika and partnerships in retail were severed.