Giffey on Signa insolvency: not good news for Berlin
Franziska Giffey, Senator for Economic Affairs, has described the insolvency of Signa Holding as "not good news" for Berlin as a department store location. "We are continuing to use all channels of communication to better assess the impact. At the moment, however, the consequences of the restructuring process in Austria on the complex Signa companies in Germany are not yet foreseeable," the SPD politician told the Deutsche Presse-Agentur on Wednesday when asked.
"What is clear, however, is that we want to stick to our goal: the preservation and urgently needed further development of the department store locations in Berlin and thus also the safeguarding of jobs and the supply structure for Berliners," said Giffey. This requires reliable partners "who can also live up to their responsibility as investors".
Signa Holding GmbH, owned by Austrian real estate and retail entrepreneur René Benko, had previously announced insolvency proceedings. On Wednesday, the holding company filed an application with the Vienna Commercial Court to open restructuring proceedings under self-administration.
Signa holds stakes in numerous properties in prime locations in Berlin, such as the KaDeWe department store. The complex group of companies is also involved in a number of construction projects which, according to media reports, are currently at a standstill. These include the two Karstadt locations in Neukölln and Wedding and a high-rise project on Ku'damm.
The insolvency of Signa Holding in the retail trade sector could potentially impact the construction projects they have underway in Berlin, such as the Karstadt locations in Neukölln and Wedding, and the high-rise project on Ku'damm. The preservation and development of department store locations in Berlin, which provide jobs and supply structure for Berliners, rely on reliable real estate investors who can meet their responsibilities.
Source: www.dpa.com
