Signa Sports United (SSU), the Berlin online sporting goods retailer that, via Signa Retail, belongs to the Signa Holding of the Tyrolean real estate investor Rene Benko, is experiencing turbulent times.
Since going public at the end of 2021, SSU’s value has plummeted from $3.2 billion to $6 million. At the beginning of October, the company announced that it would withdraw from the New York Stock Exchange at the end of the month. And at the beginning of this week, Signa Holding surprisingly withdrew its financing commitment of 150 million euros for SSU – which is now attracting attention from investor advocates.
The company, which lists bicycle, tennis and outdoor retailers, achieved sales of more than one billion euros in 2022 with 80 online shops. The termination of the “Equity Commitment Letter” by Signa Holding was “unjustified,” criticized SSU. They relied on the “binding and unconditional nature” of the financing commitment. SSU wants to take legal action against Signa Holding. At the end of June, SSU reported a half-year loss of 180.5 million euros. High inventories are putting pressure on prices and there is also an oversupply on the market. In 2022 there was a loss of 567.7 million euros, of which 244 million euros had to be written off at the British bicycle and sporting goods retailer Wiggle.
SSU’s share price has fallen from $8 to $0.018 since its IPO. The German Association for the Protection of Securities Ownership (DSW) is asking small shareholders to get in touch.
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2023-10-19 03:30:34
#Benkos #sporting #goods #retailer #Signa #Sports #distress
