The traditional German retail company, whose full name is Kaufhaus des Westens (KaDeWe), opened in 1907 and filed for its own bankruptcy in January following the collapse of its parent company Cigna. “Bild” reported on Monday that investigations are currently underway.
In Germany, three public prosecutors are already investigating the “complex Cigna empire”.
Subtle doubts
“As part of this, the documents are currently being examined – in particular in relation to allegations of bankruptcy, breach of trust and subsidy fraud,” “Bild” quoted Sebastian Buchner, a spokesman for Berlin’s public prosecutor’s office, as saying. It is not yet clear which persons should be included in the accused list. The prosecution declined to comment on details given the ongoing investigation.
In Germany, the Munich public prosecutor’s office is already investigating the billion-dollar bankruptcy of a combined 169 companies, including Karstadt and Galeria Kaufhof (from 2021 under the Galeria umbrella brand), for money laundering and possible bankruptcy crimes. It is the presumption of innocence.
Many inquiries
Investigations are also underway in Austria, for example by the Economic and Corruption Public Prosecutor’s Office (WKStA) against the managing directors of the holding company’s project company. As WKStA reported in March, these include possible fraud in connection with the capital raising operation and suspicions that investments from investors did not arrive as promised projects.
Benko also pays attention
Benko came to the attention of the authorities because of suspicions that he had concealed the financial situation of his company. He dismissed the allegations as “completely baseless”, it said in April.
The case related to the extension of the outstanding loan in the summer of the previous year. At the end of May, Benko was finally called to appear before the parliamentary COFAG-U committee, but refused to testify to many questions there, citing the ongoing investigations against him and his companies.
A wave of bankruptcies
Cigna Holding, which operates in the retail sector (Cigna Retail) and in particular in the real estate business (Cigna Real Estate), has suffered the largest bankruptcy in the history of the Austrian economy to date. In total, the liabilities will exceed ten billion euros. Last year, the group ran into payment problems, with the holding company filing for bankruptcy at the end of November, and several subsidiaries followed. The bankruptcy was filed in April.
The company was founded in 2000 by Benco – then under the name Immofina – and renamed Cigna in 2006. Several acquisitions followed in 2018, including the purchase (and later resale) of the furniture store chain Kika/Leiner (today: Kikaliner). . The former Leaner location on Vienna’s Mariahilfer Straße was a shell of the Lamarr luxury department store and is to be sold.
