Rene Benko, the self-styled tycoon of Selfridges and Signa, has filed for bankruptcy following the collapse of his real estate empire.
In the most recent chapter of Mr Benko’s fall,, the embattled entrepreneur filed for personal bankruptcy in Austria four months after the collapse of his company Signa.
Signa, which is still a shareholder of Selfridges has been in financial turmoil since the higher interest rates put pressure on a multi-billion-pound debt load.
Bloomberg first reported Mr Benko’s filing for insolvency. An Austrian lawyer had alleged that he had failed to meet financial obligations during Signa’s insolvency.
In November , after restructuring experts had been brought in to oversee business, Mr Benko was ejected by the company’s owners.
Signa’s portfolio includes stakes at London’s Selfridges and Berlin’s KaDeWe department store.
In November, however, the Thai retailer Central Group acquired majority control over Selfridges operating company by converting €364m into equity.
Due to the complex corporate structure of Signa, its collapse has been one of Austria’s most complex insolvencies.
The company is composed of over 100 shell companies and trusts based in Switzerland or Liechtenstein.
Benko, who was one of Austria’s wealthiest people before Signa collapsed, reportedly joked that the Catholic Church and British Royal Family’s property portfolios could only match Signa.
Creditors who were concerned about Signa’s financial situation filed a criminal complaint for fraud against the company, requesting an investigation of alleged “unlawful transaction”.
Signa owed European creditors almost £7 billion at the time of its failure.
In his early school years, Mr Benko began to convert attics into living space.
Signa was known for its most famous assets, such as the Chrysler Building and Selfridges, but it also focused on Germany, launching projects in Berlin, Hamburg and Frankfurt, among others.
We contacted Mr Benko’s representative for a comment.