(Bloomberg) -- Signa dismissed the chief executive officer of its two main property units due to its strong suspicion he’d violated his duties as a board member.
The company’s supervisory board removed Timo Herzberg with immediate effect, and named Erhard Grossnigg as board speaker of both the Signa Prime Selection AG and Signa Development Selection AG units, it said in a statement Monday. Grossnigg, who was appointed to the board earlier this month, will oversee the company’s restructuring.
“The suspicion was clear and left the supervisory board with no other choice,” the company cited Supervisory Board Chair Alfred Gusenbauer as saying, without providing further details. “There must be full trust in people, and unity by decisions, especially in challenging times.”
Herzberg didn’t immediately respond to a LinkedIn message seeking comment outside regular office hours.
The leadership change at Signa’s two largest subsidiaries comes as financing trouble engulfs the broader property and retail conglomerate that co-owns the Chrysler Building in New York and London’s Selfridges department store.
Signa Holding, an umbrella organization for the group, filed for insolvency in Austria last month. Signa Development warned on Friday that it may have to announce a similar move soon.
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