An Austrian court has approved cost-cutting measures at property tycoon Rene Benko's Signa Holding, which last week filed for insolvency, the administrator said today.
Signa is a shareholder in the parent group of Brown Thomas Arnotts alongside Central Group.
The administrator said it had agreed with the company's management that all assets that were not necessary for the operating business of the holding company would be liquidated immediately and all non-necessary sub-operations discontinued.
"The Commercial Court quickly approved the requested closure of the sectors on Monday," Christof Stapf, restructuring administrator of Signa Holding, said in a statement.
Continuing parts of the holding company would have led to an increase in the default suffered by the insolvency creditors due to running costs, added Stapf.
Signa Holding is the largest victim to date of Europe's property crash.
A statement from Brown Thomas Arnotts said that the Signa move has no impact on the Brown Thomas Arnotts group.
"Brown Thomas Arnotts trade completely independently from our all our shareholders. Earlier this month Central Group, announced it is to become the majority shareholder in Selfridges Group, and we are delighted to have their unwavering support," the statement added.
