What: Following the collapse of its holding company, Signa Prime Selection AG, a division of Rene Benko's Signa property empire, has filed for insolvency and submitted its restructuring plan to a Vienna court.

Why it is important: Signa's aim is to reorganize its responsibilities and liabilities, with plans to keep Signa Prime Selection operating under a restructuring plan and to submit a similar application for its Development Selection arm's restructuring proceedings to the Vienna commercial court.

The company, which has stakes in retailers including Selfridges, KaDeWe, and Karsdadt, is aiming to find long-term solutions while maintaining the value of its investments. Signa Holding, the parent company, is being managed by German restructuring specialists Arndt Geiwitz, and the insolvency filing is the latest within the Signa portfolio after the main holding entered insolvency in November. Central Group, which purchased Selfridges in a 50/50 deal with Signa two years ago, now has a minority share in the U.K.-based department store group and has taken over majority ownership of the Selfridges Group.

Signa’s key retail property division files for bankruptcy