René Benko. Credit: provided

Investor René Benko requests government assistance for his companies

The department store group Galeria Kaufhof and Karstadt is in trouble.

The corona crisis makes even major players anxious. These days, investor and billionaire René Benko has to worry about his department store group Galerie Kaufhof and Karstadt. He is negotiating with the German government about aid funds.

“Existential threat“

The company is of course affected by the shutdown of stores. On Friday, its approximately 30,000 employees received a letter from their managing director: The company is facing an “existential threat” and therefore has to withhold 15 percent of its March salaries–the company also applied for short-time work.

However, short-time work does not seem to be enough: According to an internal paper, there are currently “ongoing talks with banks to meet the extensive requirements that are necessary to receive governmental aid funds.”

Benko’s money is not enough

According to the Austrian daily newspaper “Kurier”, multi-billion parent company Signa Holding (profits in 2018: 1 billion euros, liquidity reserves of approximately 1.2 billion euros by the end of 2019), which is owned René Benko (with private assets in the amount of 4.1 billion euros), is prepared to help out with money, but apparently this is not enough.

The department store group’s otherwise weekly revenue of 80 million euros just disappeared –“substantial costs” are continuously incurred during this crisis. According to reports of “Manager Magazin”, the Galeria Kaufhof Karstadt Group needs a “hundreds of millions” to get through this crisis.

Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Ticker MORE

Galeria Wiślanka opened

Żory is a city with over 60,000 inhabitants that has just acquired a modern shopping mall. On October 22dn this year, at 13, the first, modern shopping and entertainment center Galeria Wiślanka was officially opened.

Redevco: Existing and new tenants in Berlin, Münster and Rostock

Redevco is happy to report successful leasing in properties in Berlin, Münster and Rostock. Restaurant chain Vapiano remains a tenant of ALEA 101, the mixed-use property at Berlin’s Alexanderplatz, with offices, apartments, and retail units. A new 10-year lease was concluded for the existing area of around 1,100 m².

Across Retail Talks online, November 12, 4pm (cet)

Restaurants & Gastronomy – has this former rising star turned into a fallen angel for the real estate industry?

Ingka Centres business transformation maintains strong momentum

Ingka Centres performance over the last 12 months* shows the transformation of its business is succeeding despite the economic and public health challenges posed by Covid-19.

First Brands Announced For McArthurGlen Designer Outlet West Midlands

The first collection of premium brands has been unveiled for McArthurGlen Designer Outlet West Midlands, marking an exciting milestone in the £160 million development that will be the UK’s newest major fashion and leisure destination when it opens in early 2021.

McArthurGlen CEO, Julia Calabrese, assumes new role of Vice Chairman

Europe’s leading designer outlet group, McArthurGlen, has announced that its long-serving CEO, Julia Calabrese, will assume the new role of Vice Chairman. Susie McCabe and Joan Jove will succeed her as Co-CEOs.