According to Weinhofer, Signa’s construction was heavily reliant on loans from banks and investors. This model worked well initially, but as of 2022, Benko faced challenges in raising funds for his projects. He had to deal with increasing interest rates, pay off old investors, and attract new investors. The decision to enter the trading business alongside real estate proved to be one of his biggest mistakes, leading to bankruptcies in various ventures.
While René Benko’s business entities are facing financial difficulties, he personally has not declared bankruptcy. However, as an entrepreneur, he is liable for the debts incurred. His current income has significantly decreased, and he is under investigation in various countries for alleged financial irregularities such as money laundering and fraud. Benko denies the allegations and cooperates with authorities, residing in Innsbruck with his family.
The biggest bankruptcies in Signa amounted to billions of euros in liabilities, with different entities within the company facing financial struggles. Signa Holding is now bankrupt and in the process of liquidation, while Signa Prime and Signa Development received mass loans to avoid emergency property sales. Trust restructuring proceedings are underway to sell off properties and distribute proceeds to creditors.
