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LONDON — One other division of Rene Benko’s troubled Signa property empire has filed for insolvency following the collapse of the holding firm final month.
Signa Prime Choice, which has stakes in retailers together with Selfridges, KaDeWe and Karsdadt, has filed for chapter and submitted a restructuring plan in a Vienna court docket, based on an announcement.
The submitting is the most recent in a sequence made by firms throughout the Signa portfolio after the principle holding declared insolvency and submitted its restructuring plan to the Commercial Court of Vienna in November.
As reported, Signa Holding is at the moment being managed by German restructuring specialists Arndt Geiwitz.
Signa, which purchased Selfridges in a 50/50 cope with Central Group two years in the past, now has a minority share within the U.Okay.-based division retailer group.
Signa bumped into bother earlier this yr amid rising rates of interest, falling property costs and a slowdown in shopper consumption. Having did not safe the suitable liquidity to restructure, it was compelled to name within the directors, and deal immediately with the courts.
Central Group instantly voiced its help for the shops that it at the moment co-owns with Signa and, a number of days later, took over majority possession of Selfridges.
On Nov. 14, Central Group confirmed that it had exercised its proper to transform a mortgage, supplied by one in all its subsidiaries to the Selfridges group, into fairness. It’s now Selfridges’ majority shareholder and likewise controls the three way partnership firm that oversees Selfridges Group.
The group contains the Selfridges shops within the U.Okay., Brown Thomas and Arnotts in Eire and De Bijenkorf within the Netherlands.
When it took majority management of Selfridges Group, Central mentioned the transfer “solidified” its place as an owner-operator of the biggest European luxurious division retailer group.
Signa mentioned it’s aiming to reorganize the corporate’s duties and liabilities “whereas sustaining the worth” of its investments.
Final month German media had reported that Signa was getting ready insolvency functions for a number of elements of the corporate.
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