René Benko, founder of the insolvent Signa Group, is facing his first court case. On 14 and 15 October, the 48-year-old entrepreneur will have to answer to the Innsbruck Regional Court. The Public Prosecutor's Office for Economic Affairs and Corruption (WKStA) accuses him of fraudulent bankruptcy. Specifically, Benko is alleged to have cheated creditors out of 660,000 euros, including through unjustifiable advance rent payments and gifts to relatives. The entrepreneur, who has been in custody since January 2025, denies the allegations. The presumption of innocence applies. The investigations against Benko and other defendants are currently ongoing in around a dozen proceedings. According to the WKStA, the total loss identified so far amounts to around 300 million euros. In addition to fraudulent bankruptcy, there are also allegations of embezzlement, fraud, corruption and money laundering.
Consequences for the bicycle trade
Signa Holding, which Benko founded in 1999, filed for insolvency at the end of 2023. This is considered the biggest bankruptcy in Austrian economic history. In March 2024, Benko finally filed for personal insolvency. The effects of this wave of insolvencies extended far beyond the property sector and also hit the bicycle and sporting goods retail industry hard. Through Signa Sports United, Benko controlled the largest share in the e-commerce retailer Internetstores, which included well-known online shops such as Fahrrad.de and Campz.de. In October 2023, Signa Holding withdrew a promised financing of 150 million euros for Signa Sports United, this led to the insolvency of Internetstores and thus shook up a significant part of the German online bicycle trade.
René Benko's Signa empire and its links with the sports retail sector
The links between Benko's Signa empire and the sporting goods retail sector were complex. Signa Holding included the traditional department stores' chain Galeria Karstadt Kaufhof and, since 2020, the sporting goods retailer Sportscheck. Through these investments, Benko was deeply interwoven with the bicycle and sporting goods trade. The insolvency of the Signa Group therefore had an impact on various areas of sports retail - from bricks-and-mortar retail to online business. The collapse of Internetstores in particular, as part of Signa Sports United, meant a considerable blow to online bicycle retail in Germany, as Fahrrad.de and Campz.de, two of the best-known platforms for bicycles and outdoor equipment, were affected.
Far-reaching investigations
The legal disputes surrounding René Benko and the Signa Group are likely to extend over a longer period of time. The trial scheduled for October is only the prelude and will initially deal with the accusation of fraudulent bankruptcy. Further proceedings could follow, as investigations into various suspicious facts are still ongoing. In addition to fraudulent bankruptcy, the public prosecutor's office is also investigating allegations of breach of trust, fraud, corruption and money laundering. The total loss of around 300 million euros ascertained to date illustrates the scale of the case. For the affected companies in the bicycle and sporting goods trade, this means continuing uncertainty regarding their future development and possible restructuring.
Barbara Merz-Weigandt
Editor-in-Chief
