Signa Scandal Continues: Magnificent “Postsparkasse” Building in Bankruptcy, Supreme Court Upholds Pretrial Detention for René Benko
The house of cards built by former real estate tycoon René Benko continues to crumble. As the Wiener Postsparkasse—one of the country’s most prestigious buildings—slips into insolvency, the courts are tightening their grip on the company’s founder: The Supreme Court has rejected Benko’s appeal against his pretrial detention.
Another company in the Signa Group has filed for bankruptcy: Georg-Coch-Platz Immobilien GmbH & Co. KG. The company is the owner of the “Postsparkasse” building in Vienna, which was designed by Otto Wagner. / Picture: © Wikimedia Commons / Thomas Ledl / CC BY-SA 3.0 AT (https://creativecommons.org/licenses/by-sa/3.0/at/deed.en)
The bad news for what remains of the Signa empire keeps coming. As announced by the Credit Protection Association of 1870 (KSV1870), Georg-Coch-Platz Immobilien GmbH & Co. KG has filed for bankruptcy. The company owns the world-famous Postsparkasse, designed by Otto Wagner, located in Vienna’s first district.
Despite monthly efforts by the insolvency administrators to sell the building out of court, the sales negotiations failed. The sale will now be handled through court proceedings. The liabilities are enormous: the project company’s total liabilities amount to approximately 253 million euros. The Vienna Commercial Court will initiate the proceedings shortly.
Supreme Court: No Freedom for René Benko
Parallel to the economic collapse of the Signa empire, René Benko’s personal situation is worsening, as reported by ORF. The Supreme Court (OGH) has recently, in February 2025, confirmed the continuation of the pretrial detention in which the 48-year-old has been held since January 2025. Previously, in January 2025, the defense had failed in its appeal against detention at the Vienna Regional Court. The OGH has now ruled that Benko’s “fundamental right to personal freedom has not been violated.”
This decision by the OGH comes at a critical juncture, as a new hearing to review Benko's detention is scheduled for the end of this week (late February 2025). Earlier, in December 2024, Benko was sentenced to 15 months of suspended imprisonment for fraudulent bankruptcy (embezzlement of luxury watches and cufflinks worth approximately 100,000 euros).
Both Benko’s attorney, Norbert Wess, and the Public Prosecutor’s Office for Economic Affairs and Corruption (WKStA) are challenging this verdict with a motion for annulment and an appeal. While the defense is seeking an acquittal, the WKStA is demanding a harsher sentence.
Legal Tug-of-War Over Grounds for Detention
Defense attorney Norbert Wess no longer sees any “risk of reoffending” and is pushing for Benko’s immediate release, especially since Benko’s wife, Nathalie, was acquitted in the most recent trial. The WKStA, however, is sticking to its hard line and continues to view the grounds for detention as valid.
A small “victory” for the family: The strict ban on contact between Benko and his wife was lifted following the most recent ruling, as the prosecution stated that the risk of undermining the purpose of detention no longer exists in this regard.