After the sale of Kika/Leiner by the Signa Group from the Tyrolean investor René Benko, the new owners want to apply for insolvency proceedings on Tuesday. Taxpayers are also expected to lose money in the process. Because the company received deferred taxes during the corona pandemic that Kika/Leiner would have to repay later. The Ministry of Finance has therefore turned against the Finanzprokuratur, the GPA is sharply critical.
The obligations total about 150 million euros, most of which are deferred, the “Krone” reported. The rate for restructuring proceedings is usually 20 percent if the restructuring plan is accepted. The public sector should write off 80 percent. This also applies to other creditors such as banks or suppliers.
“Look closely at what’s happening”
The Ministry of Finance did not want to confirm the number on Saturday evening, according to “ZiB1”. However, according to this, the Finanzprokuratur has been engaged. As a lawyer for the Republic, she represents the interests of the taxpayer: “Together with the trustee, we will review the processes that led to the insolvency and all major asset transfers.” Kika/Leiner also reported Corona support of almost five and a half million euros received via COFAG.
Sharp criticism comes from the GPA trade union: on Sunday its chairman Barbara Teiber described it as “more than crooked optics” “that Kika/Leiner is now being settled with taxpayers’ money, while real estate magnate Frank Albert is benefiting from a mega deal with his Supernova group”.
“Processing at all our costs”
From a GPA perspective, Benko bought Kika/Leiner, managed it “poorly”, “benefited” from the state, sold the property and company separately, “makes a profit and makes workers and taxpayers pay more,” Teiber said in a statement. broadcast. Supernova boss Frank “Albert buys the valuable real estate and has no problem with the ailing company, which is liquidated at our expense.”
Last week, the new owner of Leiner & Kika Möbelhandels GmbH, Hermann Wieser, made it clear that the chain was in very bad shape. He took over the company from René Benkos Signa with a loss of 150 million euros. He himself would have paid a symbolic euro.
After job losses also bankruptcy
Renovation steps were announced step by step. 1,900 out of 3,900 employees lose their jobs. 23 of the 40 locations will be closed. Then the following bad news, this time for the creditors: Leiner/Kika will go bankrupt next week, the aim is a restructuring process. The houses are sold separately. They mostly went to Frank Albert’s supernova group.
According to trade unionist Teiber, Albert donated “40,000 euros to Kurz-ÖVP through his company BM 454 GRA GmbH and 20,000 euros through the Supernova Group in the election year 2017”. “The taxpayer loses more than 100 million euros, while short donor Albert does a good deal.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
