Signa collapse: Investor René Benko charged again
Austria's WKStA has charged René Benko with serious fraud and harming creditor interests. The former billionaire has been in detention in Vienna for eighteen months.
Signa collapse: Investor René Benko charged again
Austria's Economic and Corruption Prosecution Authority (WKStA) has charged René Benko for a third time on fraud allegations. The Innsbruck Public Prosecutor's Office accuses the 49-year-old investor of defrauding a private foundation of five million euros. The alleged fraud concerns a guarantee declaration to a lender. Additionally, he is accused of concealing a hunting rifle worth 80,000 euros from creditors during his own personal insolvency proceedings.
Benko has been in detention in the Austrian capital for eighteen months. He has already been convicted in two separate proceedings, though none of these rulings are final. In autumn 2025, the court imposed a two-year prison sentence on him. Shortly thereafter, a suspended sentence of 15 months plus a fine followed, imposed for harming his creditors. The defendant denies all accusations.
The former billionaire's business empire collapsed at the end of 2023. Signa Holding and several subsidiary companies are in insolvency proceedings. Rising interest rates and costly acquisitions, such as the takeover of German department stores Karstadt and Kaufhof, drove the group into bankruptcy. The WKStA is investigating Benko for fraud, breach of trust and insolvency. Further criminal charges could follow.
Signa Holding was declared insolvent in April 2024. The real estate company Signa Prime was ordered in November by the Supreme Court (OGH) to transition to regular bankruptcy proceedings. Austria's Financial Prosecutor had challenged the self-administration in hopes of gaining greater insight into asset realisation.
Signa Prime is currently selling its entire real estate portfolio. This includes the Tyrol department store in Innsbruck as well as buildings of luxury department stores Globus, Selfridges and the KaDeWe Group. Previous transactions have repeatedly drawn criticism over purchase prices and buyers. Some buyers were long-standing associates of the charged investor.
Thai Central Group has fully taken over Globus's operational business. The new building in Basel reopened in October 2025. The Galeria Karstadt Kaufhof department store chain was sold to an investor consortium in June 2024. For Galeria, this was already the third insolvency within four years.
Source: Neue Zürcher Zeitung
Source: NZZ