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credit: Michael Gstettenbauer, Imago
credit: Michael Gstettenbauer, Imago

With One Billion Euros In Debt, The Signa Retail GmbH Is Also Bankrupt

On Tuesday, reorganization proceedings without self-administration were opened for the assets of Signa Retail GmbH, an intermediate holding company, at the Commercial Court of Vienna.

In the meantime, the German department store chain Galeria Karstadt Kaufhof, which previously belonged to René Benko’s Signa Group, is planning a new start with a new name.

Signa Retail GmbH is insolvent, as announced by AKV, Creditreform and KSV1870. Debts of 1.13 billion euros to 26 creditors are offset by assets of only 1.51 million euros. Nevertheless, the company is seeking a restructuring procedure without self-administration with a 20 percent quota within two years.

Signa Holding, which has been insolvent since November 2023, directly and indirectly holds a good 95% of Signa Retail. Due to the bankruptcy of the parent company, liability commitments made at Signa Retail level became effective and could no longer be serviced due to a lack of financing from the shareholders, the credit insurers announced. Signa Retail currently holds indirect participations in various corporate groups in the retail sector. These include GKK, the KaDeWe Group, GLOBUS and the Selfridges Group.

Since the insolvency of Signa Holding in December 2023, numerous subsidiaries have also become insolvent, in total, with over 10 billion euros in liabilities.