Austrian real estate tycoon Rene Benko files for insolvency

Austrian investor Rene Benko, founder of real estate and retail group Signa and one of Austria’s richest men, has filed for insolvency, a spokesperson for the Innsbruck regional court confirmed on Thursday.

The move comes after the Austrian state prosecutor filed an insolvency petition against the 46-year-old at the end of January, accusing Benko of not paying promised fees related to the insolvency of the Signa Group holding company.

The court spokesperson emphasized that this is not a request for private insolvency, but rather the insolvency of the businessman.

However, as the Austrian daily states The standard reports, Benko is personally responsible for his own private wealth, estimated in 2023 to be around €5.5 billion (around $6 billion).

Branching out into Germany, Italy

Benko’s complicated business empire includes several projects in neighboring Germany, including the Elbtower project in Hamburg, the KaDeWe luxury department store in Berlin and the Galeria Karstadt Kaufhof department store chain, all of which recently declared insolvency.

Benko’s Signa Holding filed for bankruptcy in November 2013, citing rising construction costs, rising interest rates, and various self-caused problems.

In December, Forbes removed him from its list of international billionaires in light of Signa’s mounting problems.

Benko began his business career as a teenager, converting attics in his hometown of Innsbruck. A fairytale rise saw him become a real estate mogul with skyscrapers, shopping malls and other buildings in prime locations.

mf/msh (Reuters, dpa)