Real estate investor Rene Benko is the founder of the Signa Group. picture alliance / EXPA / APA / picturedesk.com | EXPA
The Austrian entrepreneur and investor René Benko is a multi-billionaire. But his billion-dollar empire appears to be in trouble. There have been bankruptcies and construction halts, several companies have been sold and investors are distancing themselves.
Galeria Karstadt Kaufhof, various luxury department stores, the famous Chrysler Building or the Hamburg Elbtower: all of this belongs to Benkos Signa Holding.
We have listed what belongs to Signa and what new developments there are.
The Austrian entrepreneur and investor René Benko is a multi-billionaire. „Forbes“ estimates his assets at 5.7 billion euros. But his billion-dollar empire appears to be facing difficult times. There have been bankruptcies and construction halts, several companies have been sold and investors are distancing themselves.
Due to the crisis, Signa is said to have brought restructuring expert Arndt Geiwitz on board, reports „Trend“. Geiwitz already made a name for himself in corporate winding-ups such as Schlecker and Lufthansa. According to insiders, fellow shareholders are asking René Benko to withdraw, reports the “Food Newspaper”.
The Galeria Karstadt Kaufhof department store chain, the famous Chrysler Building in New York’s Manhattan district or the Elbtower in Hamburg: All of this belongs to Signa Holding, a company in which Benko is the largest shareholder. It is divided into two divisions, real estate and trading, but is also active in the media business and holds shares in the “Kurier” and the “Kronen Zeitung”.
picture alliance / GEORG HOCHMUTH / APA / picturedesk.com | GEORG HOCHMUTH / Collage: Business Insider
Various real estate projects
Signa is one of the largest private property owners in Europe. On its website, the group states real estate assets of 28 billion euros, reports “NZZ”.
It was only recently announced that the construction of the Elbtower in Hamburg had been stopped. Loud „Bild“ The stop is said to be related to outstanding payments from the Signa Group, which is behind the project, which cost a total of one billion. The prestigious project, designed by star architect David Chapperfield, is set to become the third tallest building in Germany, reports the “RND”.
A million-dollar project like this is also said to have been stopped in Stuttgart “Southgerman newspaper” reported. In March it was announced that Benko was selling half of his Kadewe property to a Thai company.
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Is Galeria Karstadt Kaufhof in trouble again? Internal documents show how high the losses are and how low the liquidity is
The department store chain Galeria Karstadt Kaufhof
The Galeria Karstadt Kaufhof department store chain belongs to the empire of René Benko’s Signa Group. The chain has now had to go through a second bankruptcy and the federal government lost almost 600 million euros. According to Business Insider information, the trading giant is already tens of millions behind plan in terms of profits and liquidity even after its second bankruptcy.
Various luxury department stores
Luxury department stores such as Kadewe in Germany, Globus in Switzerland and Selfridges in the UK are also part of Signa – often shared with Thailand’s Central Group.
Bankruptcies: Signa Sports United is bankrupt
Most recently, the real estate and trading giant Signa allowed its listed subsidiary Signa Sports United to slide into bankruptcy. Signa Sports United includes 80 providers and 500 shops, including Fahrrad.de and Tennis Point.
The Signa Group has sold off several companies
It is fitting that the group has already sold off the Austrian furniture chain Kika/Leiner and the sports retailer SportScheck. Because of the sale of the furniture chain, Signa Accused of delaying bankruptcy. The sporting goods chain Sportscheck is to be taken over by the British fashion retailer Frasers. Sportscheck has a turnover of around 350 million euros per year in 34 branches, reports that “Handelsblatt”.
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The steep rise of billionaire Rene Benko – and why he and his Signa Group are now threatened with collapse