Title: Signa's Troubles Deepen as Prime Company Looms for Insolvency
In the realm of Austrian real estate tycoon Rene Benko's Signa Group, another significant firm named Signa Prime is reportedly catching winds of insolvency. Sources close to the situation indicate that the company is readying itself for self-administrated insolvency, as reported by "Der Spiegel."
Signa Prime had been a crucial cog in Benko's Signa empire, managing high-profile properties like Berlin's KaDeWe and Vienna's "Goldenes Quartier," with its shares. Simultaneously, the group is working on a restructuring plan, aiming to convince the court of this insolvency strategy, which could potentially save assets. Despite these developments, Signa remained unavailable for comment.
The complicated Signa Group has been at the forefront of suffering due to the abrupt real estate market downturn. Benko's parent company Signa Holding had applied for debtor-in-possession restructuring proceedings in Vienna, with the court appointing lawyer, Christof Stapf, as the insolvency administrator. Insolvency proceedings had been filed for several Signa companies in Germany at the Charlottenburg district court in Berlin.
Rumors swirl around Benko's sprawling network of companies, with the German department store chain Galeria Karstadt Kaufhof, too, being speculated to face insolvency. An insider suggested that additional Signa companies could be on the brink of insolvency.
Additional Insights:
- Signal Development Selection AG and its subsidiary Signa Development Icon GmbH are grappling with financial difficulties. The creditor protection association, Creditreform, confirmed that Signa Development Icon GmbH filed for bankruptcy, ending all future operations.
- Signa Real Estate has been active in real estate takeovers, including BAI Bauträger Austria Immobilien GmbH and others. However, the group's overall financial situation seems shaky due to the broader insolvency issues.
- Signa Retail has expanded its portfolio through acquisitions like Thomas Cook Germany's travel agencies and Sportscheck from the Otto Group. Yet, the financial stability of this division is uncertain given the covid-19 lockdowns and insolvency issues.
- Signa Innovations focuses on real estate digitalization with investments in startups like Storebox. The impact of the insolvency on this division is unclear but is part of the larger Signa Group.
- Other Subsidiaries like Signa Sport United in the USA and Kaufhof in Germany and Austria might also face significant challenges in light of the ongoing insolvency issues within the group.
As of now, some subsidiaries like Signa Real Estate and Signa Innovations appear to be functional, but the overall health of these entities seems uncertain and susceptible to the broader insolvency issues within the Signa Group.
