René Benko.
© APA – Austria Press Agency
Signa Holding led by Rene Benko withdrew its financing commitment for Signa Sports.
The market value of Signa Sports United (SSU) has fallen from $3.2 billion (€3 billion) to $6 million since its IPO at the end of 2021. At the beginning of October, the struggling online sporting goods retailer announced its withdrawal from the New York Stock Exchange at. At the beginning of the week, the Tyrolean investor’s Signa Holding moved Rene Benko surprisingly returned their financing commitment of 150 million euros for Signa Sports United. Now investor advocates are taking action.
SSU includes, among other things, the dealers Tennis-Point, WiggleCRC, Fahrrad.de, Bikester, and Campz and Outfitter. With 80 online shops, sales of over 1 billion euros were achieved in 2022. The termination of the “Equity Commitment Letter” by Signa Holding was “unjustified,” criticized the online retailer in a broadcast on Monday. It relied on the “binding and unconditional nature” of the financing commitment “to continue to receive funds to meet its short-term obligations and for the going concern assessment of the company and its subsidiaries.” Signa Sports United now wants to take “legal action” against Signa Holding. Signa Holding did not initially respond to a written APA request.
Half-year loss of 180.5 million euros
The sporting goods retailer reported a half-year loss of 180.5 million euros at the end of June. The company was suffering from oversupply on the market and high inventories, which were putting pressure on prices, the semi-annual report said. For the full year 2022, the loss amounted to 565.7 million euros, of which 244 million euros had to be written off at the British bicycle and sporting goods retailer Wiggle. In order to cushion the financially strained situation, the online sporting goods retailer needs fresh capital. With the withdrawal from the stock exchange announced at the beginning of October for the end of October, Signa Sports also announced that it wanted to accelerate the strategic realignment and the restructuring program.
Signa Sports United NV is registered as a stock corporation in the Netherlands but has no physical branch there. The company headquarters is in Berlin. Signa Sports’ share price has fallen from $8 to $0.018 since its IPO on the New York Stock Exchange. The events surrounding the sports retailer are now also calling on investor advocates.
Die German Protection Association for Securities Ownership (DSW) asks Signa Sports small shareholders to get in touch. “Our Dutch colleagues have the case in their sights,” wrote DSW Managing Director Marc Tüngler on Tuesday on the X platform (formerly Twitter).
The owners
Signa International Sports Holding (SISH) most recently held 48 percent of the listed Signa Sports United, with six percent held by the British financial investor Bridgepoint, the former Wiggle owner. The Japanese SoftBank Capital Partners, the British MIC Capital Management and the Saudi Arabian Public Investment Fund each have 1.2 percent. The rest of the SSU shares are in free float.
The owner of Signa Sports’ main shareholder SISH is Signa Retail, in which Signa Retail Beteiligung GmbH holds 92.2 percent according to “WirtschaftsCompass” (company register). On Signa Holding GmbH accounts for 3.2 percent of the shares SiRe Beteiligung GmbH 2.7 percent and the German management consultant Roland Berger (2 percent). According to “WirtschaftsCompass”, Signa Retail Beteiligung GmbH is directly or indirectly owned by the Benko family private foundation.
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2023-10-18 12:30:25
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