Signa Group dissolves prominent members of advisory board

Insolvency - Signa Group dissolves prominent members of advisory board

Signa, the real estate and retail group affected by insolvency, has dissolved its prominent advisory board. The strategic advisory board, which included the German management consultant Roland Berger, never had a legal function, but nevertheless caused costs, according to well-informed circles. The advisory board members also included the Chairman of the Board of Directors of Swiss chocolate manufacturer Lindt & Sprüngli, Ernst Tanner, as well as former Austrian Chancellor Alfred Gusenbauer and former Vice-Chancellor Susanne Riess-Hahn.

An intricate network of companies

Signa Holding, founded by the Austrian entrepreneur René Benko, and other companies in the interlocking network of companies are insolvent. Creditors have registered claims of more than one billion euros. In addition, Mubadala, the state investment holding company of the United Arab Emirates, has demanded 713 million euros in payments from Signa Holding and its shareholders. However, this has been rejected for the time being in urgent arbitration proceedings, the insolvency administrator of Signa Holding announced in Vienna on Thursday. Mubadala could now initiate regular arbitration proceedings. The Signa Group includes the Galeria Karstadt Kaufhof department store group and the stalled Elbtower construction project in Hamburg. Their parent companies have not yet filed for bankruptcy.

Thanks to low interest rates and good connections to financially strong investors, Signa was able to grow strongly during the low-interest phase of recent years. Rising interest rates and construction costs have recently put pressure on the real estate sector and plunged Signa into serious problems.

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1. Despite the insolvency of Signa, renowned figures like former Austrian Chancellor Alfred Gusenbauer, as part of the advisory board, continued to contribute, albeit with associated costs.
2. In the realm of Real estate, Signa Holding, under the leadership of Austrian entrepreneur René Benko, operated alongside a network of interconnected companies with collective financial obligations exceeding 1 billion euros.
3. The Chairman of the Board of Directors of Swiss chocolate manufacturer Lindt & Sprüngli, Ernst Tanner, was also part of the dissolved advisory board, known for its strategic guidance though lacking a legal function within Signa.
4. Roland Berger, the German management consultant, was a notable member of this advisory board, providing strategic advice, though without any formally binding role within Signa.
5. Former Vice-Chancellor Susanne Riess-Hahn, a significant figure in Austrian politics, served on the same advisory board, lending her expertise to the group.
6. In response to escalating financial pressures, Signa's strong growth during the low-interest period came under strain as a consequence of rising interest rates and increased construction costs.
7. The stalled Elbtower construction project in Hamburg, a part of the Signa Group, remains unaffected by the insolvency proceedings, pending a potential filing for bankruptcy of its parent companies.
8. Lindt & Sprüngli, a renowned Swiss chocolate manufacturer, is one of the parent companies within the Signa Group, with its Chairman, Ernst Tanner, serving in an advisory capacity to the group.
9. Vienna, Austria, served as the venue for the announcement by the insolvency administrator regarding the ongoing dispute with Mubadala, the state investment holding company of the United Arab Emirates, over the payment demands of 713 million euros.

Source: www.stern.de