Signa subsidiaries fire boss without notice
The Signa Group is not only experiencing massive financial difficulties, but now apparently also has personnel problems. Two subsidiaries are dismissing their previous boss Timo Herzberg with immediate effect. He is suspected of having harmed the group.
There are personnel consequences at Austrian investor Rene Benko's ailing Signa company network. In extraordinary supervisory board meetings of Signa Prime Selection AG and Signa Development Selection AG, their previous CEO Timo Herzberg was relieved of his functions with immediate effect, Signa announced. Herzberg was also dismissed with immediate effect for cause and without notice.
"The reasons for the dismissals are an urgent suspicion of gross violations of duties as a member of the Management Board," explained Signa, without giving details. Erhard Grossnigg was appointed spokesman for the management boards of both companies in both meetings. He will continue the reorganization and restructuring steps for the two real estate companies and act in close coordination with the supervisory boards of these companies.
Supervisory Board member Alfred Gusenbauer explained that this step would create further confidence in the current situation. "The quality of the Signa Prime portfolio is outstanding and the development prospects of the development projects, which are located in the top locations of German-speaking cities, are very good."
The complex Signa Group has so far been the biggest victim of the turbulence on the real estate market. In addition to higher interest rates, real estate companies are also struggling with higher construction costs and the lack of large real estate transactions. Signa Holding filed for insolvency in Vienna at the end of November.
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Rene Benko's Signa Group is currently dealing with both financial challenges and corporate crises. The recent dismissal of Timo Herzberg, the CEO of two Signa subsidiaries, occurred due to serious suspicions of misconduct, leading to his immediate insolvency.
Source: www.ntv.de
