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.
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- With the upcoming refurbishment of the KaDeWe department store in Berlin, Grossnigg aims to contribute to the future revitalization of Signa's most notable properties.
- As part of his role in the department store chain, Grossnigg will collaborate closely with Rene Benko and the Signa Group management team to devise strategic solutions for the group's insolvency.
- Arndt Geiwitz, a renowned reorganizer from Germany, will continue to lend his expertise to the department store chain, offering valuable advice on its restructuring plan.
- The future success of the Signa Group, a prominent player in the German retail trade, hinges on its ability to navigate its current financial challenges and emerge stronger than before.
- The refurbishment of Signa's properties and department stores, including those in prominent locations in Vienna and German-speaking cities, could potentially boost the group's revenue in the long term.
- The department store chain's insolvency has drawn interest from various stakeholders, including financiers and potential investors, who see opportunities for growth and profit in a well-managed and restructured Signa.
- With significant real estate holdings, a complex network of companies, and a promising future under new management, the Signa Group may well regain its position as a key player in the Central European retail trade landscape.
Source: www.stern.de
