Former Selfridges owner René Benko remains in custody

René Benko, the Austrian former retail tycoon, will remain in custody on charges of embezzlement, as the risk of reoffending is deemed too high. Benko is the former owner of chains like German Galeria, Belgian Inno and Selfridges.

Concealment

Benko founded the now-bankrupt Signa conglomerate, but is accused of hiding assets from creditors and authorities. The Austrian national allegedly concealed properties through a foundation named after his daughter, Laura, after he declared himself insolvent due to mounting debts – including those to the Austrian tax authorities.

Despite his bankruptcy, Benko continued to attract attention with his luxurious lifestyle. After law enforcement monitored his communications for months, prosecutors think they found enough evidence to allege he fraudulently applied for Covid-19 relief funds for a chalet in Lech, Dutch newspaper FD reports. The investigation also focuses on Signa’s financial dealings, where Benko is suspected of defrauding investors through opaque structures.

When Signa collapsed at the end of 2023, this led to difficulties for several subsidiaries. Galeria declared insolvency, but managed a successful restart. Selfridges and Dutch department store chain De Bijenkorf sought support from their Thai co-shareholder, while Inno underwent a separate sales process. The collapse resulted in significant losses for investors, who now demand that Benko repay at least 2.4 billion euros.