Globus parent company Signa files for insolvency

Following the insolvency filing of the real estate and retail group Signa, the Thai Central Group, which owns the Globus department store chain together with Signa, has reaffirmed its commitment. "Central Group remains firmly committed to securing and supporting its European luxury businesses regardless of the financial situation of its partners," the group told the news agency AWP.

"We are well positioned to manage the current situation and achieve the best possible outcome for all stakeholders," the statement continued. Central Group had previously stated that it would ensure that its businesses could continue to operate as usual. The company also emphasized that it is a "long-term owner and investor in all its businesses".

Austrian entrepreneur René Benko acquired Globus from Migros via his Signa Group together with the Central Group in 2020. In addition to the department store activities, the transaction also included eight Globus properties. Signa and Central each hold 50 percent of the shares.

Signa wants to restructure

Signa Holding had to file for insolvency on Wednesday; the company intends to restructure itself under self-administration and continue its business operations. However, the competent insolvency court must first decide whether it will allow this form of insolvency.

The Reuters news agency cites a study by investment bank JP Morgan, according to which the holding company's two largest real estate subsidiaries, Signa Prime Selection and Signa Development Selection, alone had debts of EUR 13 billion at the end of 2022. Of this, EUR 7.7 billion were loans, a good half of which were concluded at variable interest rates.

Signa's largest lenders include Bank Julius Baer, which has granted an exposure of more than CHF 600 million, and Raiffeisen Bank International (RBI) from Austria. The head of the latter had named a risk of 755 million euros, which according to insiders also involved Signa. Other lenders include Bank Austria, which belongs to Italy's Unicredit, and several German state banks such as Helaba from Hesse, LBBW from Baden-Württemberg, NordLB and BayernLB. (ah)