Skip to content
Sign In Subscribe
Economy — News — Future — Refurbishment — Department store chain — Insolvency — Construction — signa — Real estate — grossnigg — Rene Benko — Arndt Geiwitz — Germany — Retail trade — Vienna — benko — Austria

Another restructuring expert takes over important Signa position

Construction sites at a standstill and a department store chain fearing for its future: no easy task for the Signa Group. Restructuring expert Erhard Grossnigg is here to help.

,   and  ZEITUNG «AUSSIEDLERBOTE»
1 min read
Signa is building the 245-meter-high Elbtower in Hamburg. The project is currently at a standstill.....aussiedlerbote.de
Signa is building the 245-meter-high Elbtower in Hamburg. The project is currently at a standstill. Photo.aussiedlerbote.de

Insolvency - Another restructuring expert takes over important Signa position

The ailing real estate and retail group Signa has brought the experienced restructuring expert Erhard Grossnigg on board as manager of the most important sub-companies. The Austrian has been appointed as an additional member of the management boards of Signa Prime Selection AG and Signa Development Selection AG. This was announced by the Signa Group, founded by billionaire René Benko, in Vienna. Grossnigg will "implement the next reorganization and restructuring steps for the two real estate companies", it said. Previously, the German reorganizer Arndt Geiwitz had been appointed to the advisory board of the Signa Group at the beginning of November.

Signa Holding AG filed for insolvency last Wednesday. However, the most important properties and construction projects in the Signa portfolio belong to Signa Prime - including the Elbtower construction project in Hamburg, which is currently at a standstill, the KaDeWe department store in Berlin and department store properties of the Galeria Karstadt Kaufhof chain.

The group did not comment on the possible insolvency of Signa Prime and Signa Development. "The quality of the Signa Prime portfolio is outstanding, the development prospects of the development projects, which are located in the top locations of German-speaking cities, are very good," said the Austrian former chancellor Alfred Gusenbauer, who serves as chairman of the supervisory board of both companies.

Loss in the three-digit million range

Signa Prime posted a loss of around one billion euros in the previous year and had around 10.8 billion euros in debt at the end of 2022. Signa Development posted a loss of 316 million euros.

In the low-interest phase of recent years,Benko was able to take out cheap loans and attract financially strong investors to significantly expand his group. The recent rise in interest rates, construction costs and energy prices have put his complex network of companies in a precarious position.

Lesen Sie auch:

Source: www.stern.de

Comments

Related

Latest