Signa record failure

Close confidants: “Benko is a broken man”

René Benko

(Bild: APA/Hans Klaus Techt)

The billion-dollar bankruptcies in René Benko's once glamorous Signa empire do not seem to have left the real estate juggler unscathed. Close confidants, who do not wish to be named, report of a "broken man". There is currently no sign of Benko.

Benko has lost his grip on the ground after initially enjoying extreme success. The Chrysler Building in New York, for example, was a "megalomaniac purchase". "He suddenly thought he knew his way around everything, that he could turn anything into gold," a long-standing, unnamed employee told the Tiroler Tageszeitung newspaper.

After entering the retail sector and later also the media sector, the path from a man with a supposedly golden touch, who enjoyed an ultra-luxurious lifestyle at Signa's expense, to a record-breaking bankrupt had been laid. From the airplane to the stately and luxurious estate in Sirmione (Italy) including helipad, from the chalets in Lech to the villa in Innsbruck-Igls (picture below), staff included.

(Bild: zVg)

Haselsteiner: "Benko had the reins in his hands" 
Benko was de facto the managing director until the end, even if he tried to disguise this to the outside world. He "had the reins in his hands" and instructed his employees and managing directors, said Signa investor Hans Peter Haselsteiner last week. "In my eyes, he should not shirk his duties." Possible liability issues for Benko personally stand or fall with a de facto managing director position. As reported, the State Financial Procurator's Office wants to investigate such issues.

Benko is currently shying away from the public eye. It is unclear exactly where he is, whether in Innsbruck or elsewhere. He has been seen in Vienna time and again, having breakfast in "his" Park Hyatt in "his" Goldenes Quartier in the city center.

Kurz took Benko to the Emirates in 2019
In the past, politicians from former Chancellor Sebastian Kurz (ÖVP) downwards were very happy to be photographed with him. The latter even took Benko with him to the Arab world during his time as chancellor, for example to the United Arab Emirates in 2019 to hold investor talks. Kurz and the then Minister of Justice Josef Moser are said to have been involved in the Kika/Leiner purchase by Signa at the end of 2017, including the Leiner building on Mariahilfer Straße in Vienna, which is currently a shell of the planned luxury department store "Lamarr" and is on hold.

According to Benko's companions, it was Dieter Berninghaus in particular who knew how to drive Benko forward, writes "TT". Berninghaus has held key positions in the Signa Group since 2016. In 2022, former Migros and Rewe manager Berninghaus said in an interview with the Swiss business magazine "Bilanz" that he was in the process of building the largest luxury department store group in Europe. He was made head of retail for the real estate empire by Benko.

"When Benko and Berninghaus agreed on a strategy, a decision was made, then the train ran over it. It was no longer possible to counteract this from the outside," says a Signa employee from better days.

Signa head of retail earned millions
The 58-year-old Berninghaus, a German with a Swiss passport, earned millions at Signa - from the luxury department stores of Selfridges to the IPO of Signa Sports and the "megalomaniacal purchase" of the Chrysler Building, the "TT" quotes an ex-Signa employee. Berninghaus lives in Switzerland and, according to his spokesperson, has always worked from there.

A second name that comes up in the investigation into the Signa bankruptcy is Timo Herzberg. Just before Christmas, Herzberg was relieved of his position as CEO of Signa Prime and Signa Selection with "immediate effect". It remains to be seen what exactly disturbed the relationship of trust. It is suspected that Herzberg may have collected millions in bonuses using unfair methods.

For Signa, the ECB is to blame for the collapse
Signa likes to argue that the European Central Bank (ECB) is practically to blame for its collapse. This is due to a special audit of bank loans to Signa and the rapid interest rate hikes. However, the ECB was only following previous developments in the USA with its increases and, as the "TT" writes: "Every businessman knows that interest rates can change."