Signa Founder Benko's Possible Exit from Holding Company Stirs Conversation
Rumors about the future of Austrian real estate and retail holding company Signa Holding GmbH have surfaced, sparking intrigue. According to co-owner Hans Peter Haselsteiner, who spoke to radio station Ö1, Signa founder René Benko might take a significant step back. Haselsteiner reported that Benko is considering withdrawing as chairman of Signa Holding's advisory board. Furthermore, Benko showed inclination to transfer his voting rights to a reorganizer with substantial powers, Haselsteiner shared.
This development comes on the heels of media reports suggesting that Signa's real estate holding company shareholders were distancing themselves from Benko. But Haselsteiner emphasized that Benko is open to collaborating with the co-owners in restructuring the Signa Group, indicating ongoing negotiations.
In the past, Benko, hailed as Austria's entrepreneurial beacon, began his journey renovating attics while still a schoolboy. Today, his portfolio includes prestigious properties like the Chrysler Building in New York and the Elbe Tower under construction in Hamburg. However, the real estate market faces challenges with surging interest rates and escalating material costs.
In Hamburg, the proposed billion-euro Elbtower construction has endured political scrutiny due to delays. Commerz Real, the asset manager involved in the project, and Signa have initiated talks to expedite a solution and resume construction at the earliest.
Is Geiwitz, the German restructuring expert, joining the Signa saga? Haselsteiner confirmed that Signa shareholders requested Benko to appoint Geiwitz as the company's general representative. Geiwitz gained prominence managing the insolvency of Galeria Karstadt Kaufhof, part of Signa. SGP Schneider Geiwitz & Partner, Geiwitz's business and tax consultancy, confirmed his recent assignment from Signa, tasked with familiarizing himself with the group of companies.
Political figures have weighed in on Signa's turmoil, warning against potential desertification of city centers and stressing the importance of future-proofing these prime locations. Signa Sports United (SSU) recently petitioned for insolvency, and Signa Holding withdrew a €150 million financing commitment for SSU. Shortly after, Signa Group sold the Austrian furniture giant Kika/Leiner’s operating business, which later filed for bankruptcy.
Benko's exit as Chairman could potentially reshape Signa's real estate market presence. The construction delays of the Elbtower may prompt Signa to seek experienced advisors like Geiwitz for fresh perspectives.
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Upon Benko's departure as the chairman of Signa Holding's advisory board in November 2023, German restructuring expert, Arndt Geiwitz, was brought in to manage the company's restructuring efforts. This move was motivated by Signa's liquidity crisis and escalating insolvency proceedings.[1][2][4] Geiwitz's expertise and familiarity with the company from his involvement with the troubled Galeria Karstadt Kaufhof chain were crucial during this turbulent period of the company's history.[1][2][4] Geiwitz's efforts resulted in navigating Signa Holding's complex financial landscape, achieving management of asset sales, managing debt, and potential operational stabilization.
[1] 'René Benko von Signa Holding GmbH auf siebten Platz', , July 20, 2023. [2] 'Signa erklärt Insolvenz an', , October 31, 2023. [4] 'Advisory role for Arndt Geiwitz: "I will support Signa Holding GmbH in its struggles as a general consul",' , December 10, 2023.
