What: Signa’s bankrupcy might endanger Globus department stores.

Why it is important: Switzerland is a relatively small country for 3 chains of department stores. Any capitalistic move might durably change the retail landscape.

The future of the Globus department stores, part of René Benko's Signa Group, is increasingly uncertain. While Globus reportedly has enough liquidity to manage through the Christmas period, its future beyond that is unclear. According to Inside Paradeplatz, key divisions of Signa may have to declare bankruptcy unless Benko can secure 500 million Swiss francs to stabilize his empire, which seems unlikely.

Since being sold by Migros four years ago, Globus, operating under "Magazine zum Globus AG," is 50% owned by Signa, with the remaining half held by Thailand's Central Group. There had been talks of selling Signa's share to its Thai partner, but the complex structure managing Globus has made this difficult.

Notably, Globus' retail operations are part of Signa Retail Selection AG, while its real estate assets, including the iconic Zurich building, are under another division, European Industry Holding AG. NZZ am Sonntag raised questions about the valuation of the Zurich property in Signa's accounts, which appears high given the revenue it generates. However, according to experts and sources, Globus' retail operations are profitable.

Globus stores are endangered by Signa’s woes