Signa Development Selection AG, another company from the billionaire’s real estate empire, fell into the red. The Bloomberg news agency reported this on Wednesday. The revaluation of real estate resulted in a loss of 190 million euros in the first half of the year. Liquid assets have shrunk from 125 million to 32 million euros since the beginning of the year, Bloomberg cited documents that were available for inspection.
This information was presented to investors on Tuesday, according to the news agency. The company referred to the deteriorating market environment in view of the increased interest rates. The company is currently in the process of appointing financial and legal advisors. According to the information, a board member of Signa Development Selection also resigned. A company spokesman did not immediately respond to a request for comment outside of business hours, according to Bloomberg. A request from the APA has also remained unanswered.
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As the news magazine “News” reports, the Swiss Signa Retail Selection AG has an annual loss of 1.394 billion euros in its books according to its annual financial statements as of September 30, 2022, after a loss of 1.194 billion in the previous year. According to the information, the equity amounted to 620 million euros. Long-term debts totaled 4.869 billion euros and short-term debts totaled 1.074 billion euros.
According to “News”, the annual financial statements of the Swiss Signa Retail Selection are explosive in that “significant trading activities of the Signa Group are likely to be bundled in Signa Retail”. A statement from Signa could not be received at short notice.
The retail division’s flagship, the German Galeria Karstadt Kaufhof, “had to file for bankruptcy twice within three years under Signa’s auspices.” The German taxpayer has released around 700 million euros in state aid through the Economic and Stability Fund.
Online sports retailer bankrupt
Last week, “News” published Signa Holding’s balance sheet as of December 31, 2022 – a loss of around 505 million euros and an increase in liabilities from 634 million euros to almost 2 billion euros were made public.
Recently there have been further signs of tension in the Signa Group. Construction work was stopped in Hamburg and Stuttgart. Furthermore, the online sports retailer Signa Sports United has filed for bankruptcy. A financing commitment from Signa Holding was previously withdrawn.