Vienna Commercial Court approves cost-cutting measures at Signa Holding
Published: Tuesday, Dec 5th 2023, 13:20
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As announced, restructuring manager Christof Stapf is cutting back at Signa Holding. The commercial court in Vienna has now approved the rigorous austerity measures. Accordingly, all non-essential operations will be discontinued with immediate effect.
Stapf announced on Tuesday that this affects the majority of the holding company's 43 employees, in particular hunting, flight, security and event management personnel for representation and business development tasks. The employees will either be given notice or can leave the company with a three-month entitlement to compensation.
According to the restructuring administrator, all assets that are not absolutely necessary for the holding company will be liquidated immediately. "The commercial court immediately approved the requested closure of the subdivisions on Monday," said Stapf. "The holding company's operations in question generated considerable ongoing costs. Its continuation would therefore have led to an increase in the loss suffered by the insolvency creditors", continued the restructuring administrator.
According to the Austrian newspaper "Kronen Zeitung" and verified by APA, Signa Holding had accumulated 4.9 million euros in travel expenses, 2.2 million euros in private jet expenses, 409,000 euros in hunting expenses, 722,000 euros in security expenses and 463,000 euros in helicopter expenses in the previous year. In the liquidity plan for the next three months, travel expenses are stated at EUR 23,000 per month. While Signa Holding spent EUR 2.7 million on lawyers in the previous year, EUR 50,000 has now been earmarked for the next three months.
In Switzerland, the parent company of Magazine zum Globus AG, as the department store group is known, has also applied to the competent court for a debt restructuring moratorium. This step is intended to prevent the Swiss Signa Retail Selection AG from becoming dependent on the insolvency proceedings of the Austrian parent company.
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