IT unit of the Signa Group files for insolvency proceedings
Published: Tuesday, Dec 12th 2023, 18:40
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The IT unit of the badly troubled real estate and retail group Signa has filed for insolvency proceedings. The application by Signa Informationstechnologie GmbH was filed with the Vienna Commercial Court, a court spokeswoman confirmed to the German Press Agency on Tuesday.
According to the credit agencies KSV and Creditreform, the company has debts worth around 24.1 million euros. The insolvency affects 49 employees and 154 creditors. The Signa Group, founded by the Austrian entrepreneur René Benko, did not comment on the latest partial insolvency in the complex network of companies, half of which also includes the Swiss department store group Globus.
Signa Holding and other sub-companies had previously filed for insolvency. Signa Development, the group's central real estate development unit, also held out the prospect of such a step "in the very near future" last week. The highly indebted luxury real estate unit Signa Prime, which includes the KaDeWe department store in Berlin and the stalled Elbtower project in Hamburg, has not yet commented on its current financial situation.
During the low-interest phase of recent years, Benko was able to take out cheap loans and attract financially strong investors to greatly expand his group. The recent rise in interest rates, construction costs and energy prices have put his complex network of companies in a precarious position.
©Keystone/SDA
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