Center backs Selfridges, KaDeWe and other luxury properties in Signa scandal

A multi-billion dollar Austrian real estatedeveloper founded by René Benko is on the verge of collapse due to the recent rise in interest rates, falling property values and poor management. Benko has been removed as chairman of the company and shareholders have hired German restructuring experts Arndt Heivitz to save the company, according to media reports. Signa did not respond to a request for comment.

Two years ago, Signa and Central Group teamed up to acquire Selfridges for a reported 4 billion pounds. They each took a 50 percent stake in the retailer, which they later split into two businesses: real estate and retail. The latter pays rent to the former. The deal covered Selfridges Group's portfolio of 18 department stores, including Selfridges in''London, Manchester and Birmingham, England; de Bijenkorf in the Netherlands; Brown Thomas and Arnotts in Ireland, as well as associated online platforms and facilities in London, Manchester and five locations in Ireland.

This is not the first time these two international companies have merged. They also jointly own Globus in Switzerland, as well as KaDeWe. On Monday, Selfridges and KaDeWe issued similar statements and said their businesses would not be affected by Signa's problems.

A Selfridges spokesperson told WWD that the Signa problems "won't change anything for Selfridges, which operates independently of the support of its shareholders. We are delighted to have the unwavering support of the Central Group. We are very focused and excited about the upcoming Christmas period and welcoming our customers into our stores''and Vietnam, as well as in Europe. In the past, the company has made no secret of its intentions to expand through acquisitions in Europe and Asia and has said it has little interest in the U.S. market. "It's a very large market, very developed. It's very challenging, whereas in Europe we feel we can buy these stores and improve them," Chirachivat told WWD in a 2017 interview.

In an interview with WWD nine months after Selfridges was acquired from the Weston family, both partners expressed optimism about the future. Asked why they acquired Selfridges, Ernst Dieter Berninghaus, co-chairman of Selfridges Group and chairman of Signa's executive board, said: "This was a unique opportunity for us." He added that the UK group was different from previous acquisitions in that its''We don't need to restructure. "We don't need to clean up or rebuild the past, and that's what attracts and inspires us because it means we can work on the future from day one," he said.

The Signa Group describes itself as an international investment and industrial holding company active in the real estate, retail and media sectors.