Crisis at Globus parent company Signa intensifies
A first subsidiary of the Signa Group has filed for insolvency in Germany, with further insolvency applications apparently to follow. Signa is co-owner of the Globus department store chain.
The crisis at the Signa Group, which was founded by Tyrolean investor René Benko, is coming to a head. On Friday, Signa Real Estate Germany, the first subsidiary in Berlin, had to file for insolvency due to inability to pay. As reported by various German and Austrian media, further insolvency applications are being prepared, including apparently for the parent company Signa Holding and the real estate company Signa Prime Selection. However, a Signa spokesperson did not confirm this. He referred to ongoing talks with potential lenders.
Signa Holding is co-owner of the traditional department store Globus. It acquired the department store group from Migros at the beginning of 2020 together with the Thai Central Group; the joint venture partners each hold 50% of the business and the real estate. The Central Group had already announced that it would support the department store. Central and Signa were also co-owners of the British department store chain Selfridges, where Central has since announced its intention to acquire a majority stake.
Signa must raise EUR 500 million by the end of the year to avoid insolvency. A 200 million euro corporate bond is already due at the end of November. (ah)
