He Bought a Piece of the Chrysler Building. Now His Empire Is Falling Apart.

René Benko, an Austrian-born retail and department-store magnate who co-owns the Chrysler Building in New York, is facing financial difficulties as his main holding company, Signa Holding, files for insolvency in Austria. The property empire, which includes stakes in major department store chains and upscale British retailer Selfridges, has been hit by the global property slump, rising interest rates, and poor performance of Benko's trophy holdings. European regulators are closely monitoring the situation, and banks that have lent to Signa have taken provisions on their loans. Benko's empire grew rapidly over the years, but the retail sector's struggles and mounting debt costs have contributed to the current crisis. [Extracted from the article]