Mr Benko founded European property developer Signa in 2000. Photo: GEORG HOTCHMUTH/AFP
A Selfridges spokesman said the company has the “ongoing and unwavering support of Central Group”, adding: “This does not change anything for Selfridges, we continue to operate and service our loans and lease obligations as normal. Selfridges trades independently of our shareholders.”
A representative for the Thai shareholder said: “Central Group remains steadfast in its commitment to protect and support its European luxury stores regardless of the financial position of its partner.” The company said it is in good financial condition and enjoys “access to a wide range of funding streams to support the development of this unique portfolio.”
“We are well positioned to manage the current situation and ensure the best possible outcome for all stakeholders.”
In a statement on Monday, Signa said: “Despite significant efforts made in recent weeks, The necessary liquidity for out-of-court restructuring cannot be sufficiently ensured, therefore Signa Holding GmbH is applying for a self-managed restructuring procedure.”< /p>
The company said it is committed to “the orderly continuation of business operations… and a sustainable restructuring of the company.”
The bankruptcy made Signa one of the most visible casualties. European real estate crisis, caused by rising borrowing costs and falling property values.
Signa said its retail investments had not performed as expected amid economic pressures in Europe.
The group with large debt also noted “a negative impact on business development in the real estate sector in recent months.”
In recent weeks, restructuring experts have been scrambling to get their hands on Signa, which previously said it would unveil its turnaround strategy by the end of the month.
The European developer, which also has stakes in the Chrysler Building in New York and luxury KaDeWe department store in Berlin was founded by 46-year-old Benko in 2000.
However, shareholders forced him out earlier this month.
The announcement will raise alarm bells among several European banks that could potentially be targeted fallout from the Signa crisis.
Julius Baer, a key creditor of Signa, last week warned of a potential fall in full-year profits after setting aside 82 million Swiss francs (£74 million) for payments. for bad loans.
Switzerland's second-largest asset manager said it had added 70 million Swiss francs worth of provisions for credit losses since the end of October, raising concerns it was exposed to the Signa crisis.
Recent Comments