Thai conglomerate Central Group has reaffirmed its financial support for Globus, the Swiss department store co-owned by Signa Holding, which is facing major financial difficulties. While Signa Holding is considering filing for bankruptcy, co-shareholder Central Group is committed to providing the necessary support to ensure the continuity of Globus’ operations.
Central Group, co-owner of the prestigious Swiss department store Globus, confirmed on Wednesday November 29 its commitment to supporting all its luxury stores in Europe. The Thai family-owned conglomerate intends to provide the necessary assistance to ensure the continuity of their operations.
Signa Holding, Globus’s other co-owner, has been facing major financial difficulties in recent months. The Austrian real estate group has finally announced its intention to file for bankruptcy. René Benko, the billionaire at the head of Signa, was unable to avoid such an outcome.
“Despite considerable efforts in recent weeks, it has not been possible to raise sufficient funds to avoid insolvency proceedings,” the company explained on Wednesday.
Signa Holding, an iconic real estate empire with assets such as the Chrysler Building in New York and stakes in European retail giants, enjoyed a remarkable rise under René Benko. But this success was overshadowed by major financial setbacks, which led to the company being placed under the protection of an insolvency administrator.
Globus, equally owned by Signa Holding and Central Group, is also affected by this situation.
Central Group’s commitment
In a statement, the Thai group reiterated that it is an “established, long-term owner and investor in all its stores. Regardless of the position of our joint venture partner”.
Since their acquisition by Central Group and Signa Holding four years ago, Globus department stores have been repositioned in the luxury sector. The Swiss chain currently comprises nine stores. It has 1,700 employees and 1,400 people working for the various brands such as Louis Vuitton and Moncler present in its department stores.
“Central Group remains a committed shareholder, enabling us to continue to run our business as usual, while offering the best service and experience to our customers”, says Globus.
Sale of shares compromised
The sale of the shares held by Signa Holding to Central Group had been considered, but sources close to the matter indicated that the opaque structure of Globus’ management would have complicated this transaction. Signa Retail Selection AG manages the retail business of Globus department stores, while the real estate is managed by another division, European Industry Holding AG.
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Featured photo : © Globus
