Due to suspicion: Signa’s top executive dismissed without notice

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Signa Group, founded by billionaire René Benko, announced in Vienna on Monday evening that Herzberg was relieved of his duties with immediate effect and terminated without notice.

It was stated that the reason for the dismissals was the urgent suspicion of gross violations of duty as a member of the board of directors. Renovator Erhard Grossnig will take on the role of board spokesman for both real estate companies to be renovated and restructured. Several Signa group companies had recently filed for bankruptcy.

The most important properties and construction projects in the Signa portfolio belong to Signa Prime; these include the currently stalled Elbtower construction project in Hamburg, KaDeWe in Berlin, and department store properties in the Galeria Karstadt Kaufhof chain.

Signa also has a stake in Globus stores in Switzerland. Swiss Signa Retail Selection AG, co-owner of Globus, had the temporary moratorium approved on Wednesday last week.

Signa Prime posted losses of around 1 billion euros last year and had debts of around 10.8 billion euros at the end of 2022. Signa Development announced a loss of 316 million euros.

During the low interest rate period of the past few years, Benko was able to obtain cheap loans and attract financially strong investors to significantly expand his group. The recent rise in interest rates, construction costs and energy prices has put the complex network of companies in a difficult situation. (SDA)

Source :Blick