According to the US magazine Forbes, the Tyrolean Signa founder René Benko is no longer a billionaire. One of the most important companies in the Signa Group is now apparently facing bankruptcy filing.
René Benko has been on Forbes’ billionaires list since 2019. At that time, the US magazine estimated his fortune at around five billion dollars. But now there is no room for Benko on the list of the richest people in the world. The Tyrolean Signa founder is officially no longer a billionaire, writes Forbes. The entrepreneur is “under pressure” due to the difficulties of his Signa Group.
“Neat in Difficulties”
In November, Benko had already slipped from 425th place to 1,105th place due to the crisis at the real estate group Signa Holding. Within a few months, his assets had shrunk by more than half – from around $6 billion to $2.8 billion.
At the end of November, Signa Holding filed for bankruptcy – it is the largest bankruptcy in Austrian history to date. But that’s just the beginning, according to Forbes. “The 46-year-old, who built up his portfolio largely with borrowed capital and gained access to Europe’s elite through his charm, seems to be getting into a lot of trouble.”
More bankruptcies just “a matter of time”?
How serious the situation is is not entirely clear, writes the US magazine. This is also due to Signa’s complex, largely opaque network of companies and subcontractors. Many experts believed that it was only a “matter of time” before the two subsidiaries Signa Prime Selection and Signa Development Selection also went bankrupt.
In fact, according to a media report, the subsidiary Signa Prime is apparently on the verge of bankruptcy. The management is preparing for self-administration insolvency, the “Spiegel” reported today, citing insiders. In the luxury real estate company, Benko has pooled Signa’s shares in well-known properties such as Berlin’s KaDeWe and Vienna’s “Golden Quartier”. Prestige projects such as the construction of the Elbtower in Hamburg – which was stopped a few weeks ago – also belong to Signa Prime Selection AG.
Group wants to save assets
“Spiegel” reported that a restructuring plan is currently being worked on at full speed, with which a court must be convinced of this form of insolvency. It is hoped that this will enable assets to be saved. Signa could not be reached for comment.
Observers expect further insolvency applications from Signa companies. Benko’s extensive company network also includes the German department store chain Galeria Karstadt Kaufhof.
The German subsidiaries Signa Financial Services GmbH, based in Frankfurt, and Signa REM Germany GmbH from Munich have already filed for insolvency at the Charlottenburg district court this week. In both cases, the court appointed lawyer Torsten Martini as the provisional insolvency administrator. He also holds this role at Signa Real Estate Management, which had previously also filed for insolvency in Berlin.