Financial problems at Signa: Is Globus Group about to be sold?

In Germany and Austria, the media paint an increasingly dramatic picture of the Signa Group. Today, the Viennese magazine “News” reported that Signa Dachholding will make a loss of nearly half a billion euros in 2022. At the same time, debts increased from 634 million to 1.99 billion with increasing interest rates.

The interest rate reversal hit Benko’s empire hard. Refinancing real estate and projects is becoming more expensive and the valuation of properties is starting to decline. The perfect storm.

Klaus-Michael Kühne, one of the major shareholders of Kühne + Nagel, also seems to be moving away from the famous Tyrol businessman. A few weeks ago the billionaire, who lives in Schindellegi, said quite frankly about his investment in Signa: “The situation is a bit fluid at the moment; “We are following the matter.”

To calm people’s minds, Benko and Kühne soon announced that they would jointly develop the Beam office tower in Berlin in a 50-50 joint venture. From today’s perspective, this looks more like a stalling tactic, as it is now said that Benko is not involved in this Beam project and Kühne is traveling alone. Comment from the Kühne camp: “Kühne Holding does not want to comment on this matter.” A denial sounds different.

Elbtower is in danger

Problems are also brewing in Kühne’s hometown of Hamburg: One of his prestigious properties, the Elbtower, also appears to be in trouble. According to Hamburger Abendblatt, the construction company Lupp is currently suspending work on the prestigious construction site because Signa is said to have not paid its bills. The tower construction has now reached 100 meters, but there is still 145 meters to go until the new landmark of the port city. What will happen next is not yet known. Negotiations are continuing with Signa and Commerzbank to continue the construction.

Benko, a jack of all trades who has established an extremely complex and intricate investment structure in which more than a hundred companies have been integrated in a few years, faces challenges on all fronts. Because it’s not just Kühne who keeps his distance, German consultancy legend Roland Berger is also worried. He wants to divest himself from the Signa Prime holding and is making this known to the public. “I exercised my put option,” he was quoted as saying on “Handelsblatt”. And also: He is in talks with Signa Prime about a possible launch date. Berger also complains that communication with Signa investors leaves much to be desired. The Signa website says in its best PR speech: “Cooperation with investors is characterized by transparency, equal treatment, openness and trust.” Ernst Tanner and Arthur Eugster are unlikely to have enjoyed the conflict with Berger. Switzerland’s chocolate king Tanner and Thurgau-based Nespresso machine maker Eugster are leading shareholders of Sigma Holding, the holding company in which Benko is the majority.

Globus: Will Thais take over?

Kühne and Berger are isolated cases so far, but Benko urgently needs to keep its fickle investors in line. To restore confidence in the group, the slogan is: save, split, find new investors to bring cash to the group. It has already canceled a $150 million cash injection into US-listed Signa Sports United. Signa Sports United is now on the ropes because the numbers are so scary. In a time of need, Benko hired German restructuring expert Schneider Geiwitz a few days ago to assist Sigma Premium, which also owns the Swiss luxury department store chain Globus. This is due to the fact that retail specialist Dieter Berninghaus, former Migros’ top man, was not at Signa Reich for a long time due to illness.

Swiss investments Globus Group have not yet been affected by the financial problems in Germany and Austria. According to industry circles, sales are still in line with market standards. However, this could change quickly if banks and investors turn away from Benko. Attention can then fall on Signa Premium, which brings together all kinds of high-end addresses from the premium and luxury department store segment, including KaDeWe in Berlin or the Alsterhaus in Hamburg and the Globus Group, which has been taken over by Globus Group since 2020. Migros Group acquired 1 billion francs.

Now the Thai Central Group of the extremely wealthy Chirathivat clan comes into play. A possible way to ease Benko’s financial burden would be to partially exit Signa Premium by having Thais increase its stake or take over the Signa division entirely. Central Group today owns 50 percent of Signa Premium. And it’s extremely well-financed; This spring, Thais took over 50 percent of KaDeWe in Berlin. They should not be happy with the turbulence surrounding their business partners. “Thais have been interested in Globus for a long time,” says an experienced retail expert. Creating a strong brand in wealthy centers and at the same time attracting tourists from all over the world; This is Central CEO Tos Chirathivat’s hunting plan. And Globus Group fits this perfectly. As partners of Signa Premium, Thais have a good idea about the numbers.

Benko’s Signa group left a request unanswered.