Signa Founder and Co-owner of Selfridges Exits Troubled Firm

LONDON – Signa Holding, which co-owns Selfridges, stated Wednesday that founder René Benko has left as chairman and the corporate is now within the palms of restructuring specialist Arndt Geiwitz.

The transfer follows reviews within the U.Ok. and German press over the weekend that Signa, the multibillion-euro Austrian property developer, is in disaster as a consequence of rising rates of interest, sinking actual property values, and poor administration.  

Signa, which bought Selfridges in 2021 alongside Thailand’s Central Group, stated that Geiwitz will even take over the chairmanship of the Shareholders’ Committee of Signa Holding. 

The Benko household non-public basis will proceed to be the holding firm’s largest shareholder. 

It stays unclear whether or not Signa will promote its 50 p.c stake in Selfridges as a part of the restructuring. A Signa spokesperson declined to remark. 

Benko stated “Arndt Geiwitz has the complete belief and confidence of all Signa Holding shareholders and can manage the restructuring of your entire Signa Group out of his function. Given the present state of affairs, that is the perfect resolution for the corporate in addition to its companions, buyers and staff. What’s necessary now’s to revive belief, and I need to play my half in that.” 

He added: “Signa’s property portfolio is, and stays, distinctive. I’m completely sure that the corporate has a really shiny future. All stakeholders are referred to as upon to assist Signa presently. I’m absolutely ready to take action.” 

Signa has additionally engaged different exterior consultants, together with Rothschild & Co., to assist perform a “thorough assessment of all enterprise areas, develop measures, and draw up an built-in idea for the group.”

Geiwitz stated that Signa wants “calm and order presently. We are going to strategy these necessary duties prudently and rationally. The purpose is to search out long-term options, and that’s why it’s each accountable and essential to provoke a complete consolidation for the corporate now. 

“I name on everybody concerned to interact with this course of. The standard of the Signa Prime portfolio is really distinctive, and the prospects of the event initiatives, positioned in prime areas in German-speaking metropolitan areas, are excellent,” he stated.

As reported, Central Group stated it’s standing by the posh retail properties it co-owns with Signa: the Selfridges group of shops within the U.Ok., Eire and the Netherlands; KaDeWe in Germany; and Globus in Switzerland. 

Central Group stated earlier this week that it’s a “confirmed long-term proprietor and investor in all of its companies,” and “whatever the place of our JV associate,” it’s dedicated to supporting all of its European luxurious shops. “We are going to make sure that they’ve all of the backing they require to proceed to function as regular.”

On Monday, Selfridges and KaDeWe issued comparable statements saying their companies wouldn’t be impacted by Signa’s woes, they usually had the complete assist of Central. 

Two years in the past Signa and Central Group joined to accumulate Selfridges for a reported 4 billion kilos. They every took a 50-50 stake within the retailer, which they later cut up into two companies, a property one and a retail one. The latter pays lease to the previous.

The deal spanned the Selfridges Group’s portfolio of 18 shops, together with Selfridges in London, Manchester and Birmingham, England; de Bijenkorf within the Netherlands; Brown Thomas and Arnotts in Eire, and their related e-commerce platforms and the properties in London, Manchester and 5 areas in Eire.