Signa insolvency: Giffey rates situation as very serious
According to Franziska Giffey, Senator for Economic Affairs, the insolvency of Signa Holding will have an impact on all department store locations. The announcement of the insolvency proceedings has brought a certain clarity, said the SPD politician on Thursday at the plenary session in the House of Representatives. "Nobody can be happy about this. It's not good news either, so the situation is very, very serious." The consequences are not yet clear in every detail. However, it is clear that it has an impact on all locations when a group declares insolvency in this way.
What has not changed as a result of the development is the city's clear commitment to the development of the locations and, above all, to the preservation of jobs. "We have an enormously important department store infrastructure here for the retail sector," said Gifffey. It must be preserved. "That is our most important concern."
Signa Holding GmbH, owned by Austrian real estate and retail entrepreneur René Benko, applied to the Vienna Commercial Court on Wednesday for the opening of restructuring proceedings under self-administration. Signa consists of a complex network of companies with hundreds of individual companies. This also includes Galeria Karstadt Kaufhof with several department stores in Berlin.
The insolvency of Signa Holding could potentially affect the Senate's plans for retail trade development, as they have a significant stake in the retail sector due to the department stores under Galeria Karstadt Kaufhof. Given the seriousness of the situation, it might be prudent for the Senate to explore opportunities in other sectors, such as real estate, to diversify their economic portfolio.
Source: www.dpa.com
