(Sharecast News) – Two subsidiaries of major European property company Signa have filed for bankruptcy, the company said on Thursday.

Prime Selection AG, co-owner of properties such as the Selfridges department store in London and Berlin’s KaDeWe, filed for self-administered restructuring in Vienna’s commercial court, while Signa Development Selection – which focuses on residential and commercial urban development projects – would do so on Friday.

Both are part of the now-insolvent Austrian Signa Holding.

“The aim is the organized continuation of business operations within the framework of self-administration and the sustainable restructuring of the company,” the company said in a statement.

Online sporting goods division Signa Sports United filed for insolvency in October, while Signa Holding itself and several smaller subsidiaries announced their insolvency in recent weeks.

Signa Holding, a network of around1,000 companies, is owned by Austrian real estate and retail mogul Rene Benko, but has been hit by higher building costs, surging energy prices and interest rates.

Its total real estate assets, which include luxury hotels and shopping malls were valued at more than €23bn at the end of last year.

Major co-investor, the Thai Central Group, has already moved to take control of the operating business of Selfridges, after it converted a shareholder loan to equity. Saudi Arabia’s Public Investment Fund helped finance Signa’s investment in Selfridges, and has an indirect 10% stake in the store.

Reporting by Frank Prenesti for Sharecast.com

Related articles

Ryanair passenger numbers jump 9% in December

Ryanair passenger numbers jump 9% in December

(Sharecast News) - Budget airline Ryanair reported a 9% jump in December passenger numbers on Wednesday. Traffic rose to 12.54 million from 11.52m in the same month a year earlier, while the load factor - which gauges how full the planes are - ticked down to 91% from...

Wizz Are passenger numbers soar in December

Wizz Are passenger numbers soar in December

(Sharecast News) - Hungary-based budget airline Wizz Air reported a strong rise in December passenger numbers as demand continued to rebound from the Covid pandemic. The company on Wednesday said it carried 4,964,857 passengers, an 18.8% increase year on year. For the...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!