Financial Crisis at Signa: Bankruptcy Proceedings Initiated for Subsidiaries
The financial difficulties of Signa's flagship Signa Prime Selection lead to further negative developments within the group.
Signa Real Estate Management manages prominent projects in Austria, Germany, and Italy, including Kaufhaus Tyrol, KaDeWe, and Goldenes Quartier, but faces financial instability. / Picture: © Wikimedia Commons; Jochen Teufel, CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0/deed.en)
The wholly-owned subsidiary Signa Real Estate Management GmbH is facing bankruptcy proceedings, which have been applied for at the Commercial Court of Vienna. This was announced by the creditor protection associations AKV and KSV1870, as reported by ORF.
The company, which has liabilities of around 60 million euros and assets of around 5.8 million euros, has 47 employees and 82 creditors. Wages and salaries have been paid until November 2023, but there are currently no plans to continue the business. Early closure as part of the bankruptcy proceedings has already been accepted.
Signa Real Estate Management operates in the real estate sector and manages projects in prestigious inner-city locations in Austria, Germany, and Italy. Its best-known projects include the Kaufhaus Tyrol department store, the KaDeWe department store in Berlin, and the Goldenes Quartier in Vienna. Despite the prominent projects, the financial situation could not be stabilized.
In addition, the company reported the imminent dismissal of 45 employees to the AMS early warning system in December. This indicates ongoing challenges and potentially profound structural problems within the company.
The subsidiary Signa Rem Transactions GmbH has also filed for bankruptcy proceedings, affecting around 25 employees and 41 creditors. The financial difficulties in this branch of the company are also serious, with liabilities of around EUR 5.4 million.
These developments are an indication of the increasing challenges facing the Signa Group. The management is faced with the task of finding solutions to the difficult financial situation while at the same time safeguarding the interests of employees, creditors, and investors. The future of Signa Real Estate Management and its subsidiaries remains uncertain in this precarious situation.