Munich – Apparently no stone is left unturned in the severely ailing empire of the Austrian René Benko. Now one of the most powerful bosses has been fired: The supervisory boards of the two real estate companies Signa Prime Selection and Signa Development Selection AG have terminated their boss Timo Herzberg without notice.
Signa said: “The reasons for the dismissals are an urgent suspicion of gross violations of duties as a board member.” Timo Herzberg was responsible for the entire real estate business in Germany. He joined Signa six years ago, and in 2021 he became number three in Benko’s empire. Signa Prime Selection AG is the largest and most valuable company in Benko’s real estate sector. She had focused on investments and the long-term holding of exceptional properties in prime inner-city locations. Among them: the Old Academy in Munich.
© IMAGO/Wolfgang Maria Weber
by IMAGO/Wolfgang Maria Weber
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René Benko’s Signa Holding is insolvent – one of the biggest bankruptcies ever
The head of the supervisory board of the two real estate companies is the ex-Chancellor and former head of the Austrian Social Democrats (SPÖ) Alfred Gusenbauer (63); he joined Signa after leaving the government in 2008. Gusenbauer told Herzberg: “Unfortunately we had to make this decision and take this tough step. The suspicion was clear and left the supervisory board no other choice.”
There have not yet been any answers as to what the specific allegations are. Following the insolvency of Signa Holding in November, as expected, other subsidiaries are now also being drawn into the maelstrom. Several have already filed for bankruptcy or are said to be about to do so. Signa Holding is said to have accumulated five billion euros in debt. The bankruptcy is considered the largest bankruptcy Austria has ever seen.
René Benko’s Signa also owes money to famous politicians
There are 273 names and companies on the list of creditors, including celebrities: Signa also has debts to the company of Austria’s former chancellor Sebastian Kurz (ÖVP), who acted as an advisor.
Together with former Chancellor Gusenbauer, Kurz (37) has billed ten million euros in recent years. Gusenbauer also advised Benko on the restructuring of Galeria Karstadt Kaufhof – for which he received 2.4 million euros from 2020 to 2022, according to media reports.