The Austrian real estate entrepreneur René Benko is withdrawing from the management of the ailing Signa Group. As the company announced, the billionaire is stepping down as chairman of Signa Holding’s advisory board. There had been speculation about the move in recent days.
Similar to other companies in the real estate industry, Signa is struggling with increased interest rates and higher material costs. The company says that the German restructuring expert Arndt Geiwitz is now taking over the restructuring of the real estate and trading holding company.
“In the current situation, this is the best solution for the company, its partners, investors and employees,” said Benko, according to the statement. It is now important to restore trust. Signa’s real estate portfolio remains unique. Everyone involved is called upon to support Signa now.
Geiwitz said the company now needs peace and order. It is important to find long-term solutions. “It is therefore both responsible and necessary to initiate a comprehensive consolidation of the company now,” said the well-known reorganizer. The quality of the real estate portfolio and that of the planned projects, especially in Germany, are very good.
Signa is building the 245 meter high Elbtower in Hamburg. The group also includes the department store group Galeria Karstadt Kaufhof, which has already gone through two insolvency proceedings. The most recent trial was conducted under Geiwitz’s leadership.
However, according to a report by Tagesspiegel stopped. These include two Karstadt locations and several larger new building projects.