Investigation in Berlin

Benko’s KaDeWe insolvency is a case for public prosecutors

Following the collapse of the Signa real estate group led by Tyrolean investor René Benko, the public prosecutor's office in Berlin has also launched an investigation. The public prosecutor's office announced on Tuesday that it is investigating the insolvency of the KaDeWe Group, which formerly belonged to Signa.

There are also preliminary investigation proceedings in connection with the insolvency of the Signa Group, which included almost 170 companies, the German newspaper "Bild" quoted the public prosecutor's office as saying.

Still open who is accused
"As part of this, documents are currently being examined - in particular with regard to allegations of bankruptcy, embezzlement and subsidy fraud," the public prosecutor's office continued. It is still unclear which persons are to be named as defendants. The prosecutors did not want to comment on details, also in view of the ongoing investigations.

Prosecutors also already active in Austria
In Germany, the Munich public prosecutor's office is already investigating the multi-billion Signa bankruptcy on suspicion of money laundering and possible insolvency offenses.

The Munich prosecutors are in contact with other German public prosecutors, they explained. The events surrounding Signa have also brought prosecutors in Austria onto the scene.

KaDeWe now taken over by Thais
Signa, which is active in retail and above all in the real estate business, has suffered the biggest bankruptcy in Austrian economic history. In addition to numerous properties in prime inner-city locations, the Signa Group created by Benko also included the German department store group Galeria Karstadt Kaufhof and the KaDeWe Group.

Galeria is now to be sold to investors. The properties of the KaDeWe Group surrounding the Berlin luxury department store were sold to the Thai Central Group, which is also looking to acquire the operating business.