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According to the news of Süddeutsche Zeitung, based on company circles, Galeria had fulfilled its financial obligations towards the German Signa subsidiaries until November, but wanted to make rent payments in December and postpone them if necessary, depending on the situation.
It was stated that the situation is currently being monitored very carefully to see how it develops. Accordingly, Galeria’s rent payments are made not directly to Signa in Austria, but to various companies in Germany. This means the department store chain is bound by deadlines under German bankruptcy law.
According to media reports, on Friday one of its German subsidiaries, Signa Real Estate Management, filed for bankruptcy at the district court in Charlottenburg, Germany. “Wirtschaftswoche” on Saturday quoted an employee letter in which the company informed about bankruptcy.
The company’s “current economic situation” and “the fact that, despite all our efforts, we have not been able to improve our financial situation and the necessary liquidity in the short term, unfortunately left us with no choice but to resort to this path.” says . An interim insolvency administrator “will probably be appointed by the local court very shortly”.
Employees’ salaries are now secured for up to three months through bankruptcy money. The next steps will now be coordinated with the interim insolvency administrator and communicated as soon as possible.
Founded by Austrian real estate investor René Benko, some parts of the group, especially in the real estate sector, have faced difficulties recently. At the beginning of November, Benko gave up his management position at Signa Holding and handed over the chairmanship of the group’s advisory board to restructuring expert Arndt Geiwitz.
René Benko’s case also made headlines in Switzerland. It is estimated that Julius Baer Bank gave a large loan to Signa Holding. Julius Baer shares have been under some pressure on the stock market in recent days.
Benko is also co-owner of the traditional Globus store in Switzerland. Globus Group and its real estate are owned equally by Signa and Central Group. For this reason, the Central Group of the Thai Chirathivat family announced that it had made a verbal commitment to Globus to strengthen the back of the store. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
