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The CEO of Prime and Development has been terminated without notice » Leadersnet

The CEO of Prime and Development has been terminated without notice » Leadersnet

| Tobias Seyfried

| 11/12/2023

As the troubled company announced on Monday evening, the top manager was relieved of his duties with immediate effect. The reason for this drastic step was also revealed.

Almost exactly two weeks ago, Signa Holding filed for bankruptcy and has since been seeking restructuring measures under self-administration. Recently, most of the holding company’s employees were notified of the termination of their service by the restructuring officer (leadersnet mentioned). Now there has been an uproar in the struggling company.

The CEO’s employment has been terminated with immediate effect

On Monday, at the extraordinary meetings of the Supervisory Board of Directors of Signa Prime Selection AG and Signa Development Selection AG, the former CEO of the two companies, Timo Herzberg, was relieved of his duties with immediate effect and his service was terminated with immediate effect without notice, Signa Group announced in the evening via Send with. The reasons for dismissal were urgent suspicion of serious violations of the duties of a member of the Board of Directors.

A less surprising decision was to appoint Erhard Grossnig as spokesman for the board of directors of both companies at the two meetings. The mission remains the same: to continue the reorganization and restructuring steps for the two real estate companies and to work in close coordination with the Supervisory Board of these two companies (leadersnet mentioned).

Grossnigg should fix it

Alfred Gusenbauer, Chairman of the Supervisory Board of both Signa Prime Selection AG and Signa Development Selection AG, commented on Herzberg’s termination after the meeting: “Unfortunately, we had to make this decision and take this difficult step. The doubts were clear and the company left with “no other option.” Before the supervisory boards. Especially in difficult times, 100 percent trust in the people involved and unity in decisions are needed. With Erhard Grossnigg, we have an excellent expert specializing in restructuring issues.” Grossnigg is a certified restructuring expert.

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With this next logical step, Cigna will create more confidence in the current situation. “The quality of the Signa Prime portfolio is excellent, and the development prospects of the development projects, which are located in the best locations in German-speaking cities, are very good,” Gusenbauer said in Grossenig’s presentation last week (leadersnet mentioned).

A few days ago, Spiegel reported that Signa Prime is also likely on the verge of bankruptcy (leadersnet mentioned). No one from the company has commented on this yet.

www.signa.at

www.signa-prime.at