Signa Group Founder René Benko Resigns As Chairman Amid Company Crisis, Hands Over Reins to Restructuring Specialist Arndt Geiwitz

Signa Group navigates major property sector crisis amid skyrocketing interest rates and plummeting real estate values, spurring investor revolt and the halting of key construction projects, as shares and trust in the European real estate giant crumble.

• René Benko, the founder of Signa Group, has resigned as chairman amid a crisis within the company and consequential investor revolt, transferring the power into Arndt Geiwitz's hands - a seasoned restructuring specialist.
• Signa Group's current situation is due to skyrocketing interest rates, plunging real estate values, as well as what critics call mismanagement, which have together lead to a halt in significant construction projects and a drop in company's shares.
• Despite the current shakeup, the Benko family will continue to be the largest shareholder of Signa Group. It's yet to be determined whether Signa will sell its 50% ownership in Selfridges, with a spokesperson declining to provide comment.
• Specialists, including Rothschild & Co., have been brought in by Signa to conduct a comprehensive review of all business aspects, and to establish a set of actions and create an integrated concept for revamping the organization.
• Geiwitz, whilst asserting that Signa requires stability and order at this time, also emphasizes that the Signa Prime portfolio is uniquely positioned and claims that the prospect of development projects at premium locations in German-speaking metropolitan regions is quite promising.

3 Articles

WWD Reuters Reuters