Globus Basel’s $172 Million Loan Hangs in the Balance as Department Store Chain Navigates Troubled Waters
Basel, Switzerland – October 30, 2025 – The newly renovated Globus department store in Basel is open for business, but a significant financial hurdle looms large. A $172 million (172 million Swiss Francs) loan from Basler Kantonalbank (BKB) is due for repayment next year, and its conversion into a mortgage is far from certain, raising concerns about the future of the iconic retailer. This breaking news comes amidst a wider restructuring effort following the bankruptcy of Signa, Globus’ former partner, and a strategic shift under new ownership.
The newly renovated Globus department store in Basel. (Photo: Dominik Plüss)
Signa’s Collapse and the BKB Loan: A Risky Combination
The construction of the new Globus building, costing a total of 250 million francs, was secured by the BKB loan even as Signa, the Austrian retail empire of René Benko, began to unravel. The loan, initially intended as a construction facility, is now slated for repayment by June 30, 2026 – a deadline extended from the original January 2026. However, the property’s value and the complex ownership structure involving both Signa and the Thai Central Group, which now fully owns Globus, are creating significant uncertainty.
According to real estate experts, securing a mortgage for the full loan amount is unlikely. Banks typically offer significantly lower loan-to-value ratios for commercial properties, potentially capping financing at just 40-60% of the property’s assessed value. With a current valuation of 150 million francs, a 140 million franc mortgage is a long shot. The continued co-ownership with the insolvent Signa further complicates matters, adding a layer of risk for BKB.
A New Vision for Globus: Profitability on the Horizon?
Despite the financial pressures, there’s a glimmer of hope. Under the leadership of Pierluigi Cocchini, CEO of La Rinascente (owned by the Central Group), and Lucia Guagliardi, Managing Director of Globus Switzerland, the department store chain is projected to turn a profit next year – a first in 25 years. Cocchini emphasizes a shift in strategy, focusing on customer experience and adapting to local market demands. The Zurich location at Schweizergasse 11 is already exceeding expectations, while the Bellevue store is undergoing a concept overhaul.
Pierluigi Cocchini and Lucia Guagliardi, leading Globus’s turnaround. (Photo: Dominik Plüss)
The Rent Problem: A Legacy of the Benko System
A key challenge facing Globus is high rental costs, a consequence of inflated property values driven by the business practices of René Benko’s Signa. Cocchini is currently negotiating with the Central Group to reduce rents, recognizing that unsustainable lease agreements are hindering profitability. This isn’t an isolated issue; many cantonal banks that extended credit to Signa are now grappling with similar exposures.
Beyond Basel: A Wider Risk for Cantonal Banks
The BKB isn’t the only Swiss cantonal bank exposed to the fallout of Signa’s bankruptcy. Banks in Aargau, Valais, Obwalden, Graubünden, and Zurich also provided financing to Benko’s empire. Furthermore, the BKB also holds a smaller mortgage of 7 million francs on a temporary Globus location at Freie Strasse 50, the status of which remains unclear. New international banking regulations (Basel III) are also making banks more cautious about commercial property lending, requiring higher equity reserves.
The Future of the Property: Sale Planned for 2026
According to Signa Prime’s insolvency report, the property on Basel’s market square is slated for sale by mid-2026. This sale is likely crucial to resolving the financial uncertainties surrounding the BKB loan and ensuring the long-term viability of Globus in Basel. The success of this sale will depend on market conditions and the ability to attract investors willing to take on a property with a complex ownership history.
The reopening of Globus in Basel represents a fresh start, but the shadow of Signa’s bankruptcy and the looming loan repayment deadline cast a long shadow. The coming months will be critical as Globus navigates these challenges and strives to solidify its position as a leading department store in Switzerland. Stay tuned to Archyde for continuing coverage of this developing story and in-depth analysis of the Swiss retail landscape.
