Signa Prime Selection, which co-owns properties such as the Selfridges department store in London and Berlin’s KaDeWe filed for a restructuring under self-administration Thursday, the company said in a statement. Signa Development Selection AG, a smaller unit, will make a similar filing Friday.

The closely held units’ application for creditor protection follows a series of similar moves in recent weeks after the umbrella organization filed for self-administered restructuring in late November. Rising interest rates contributed to a cash crunch at the complex group, which relied on frothy valuations to fuel expansion.

Signa’s total real estate assets, which include luxury hotels and malls as well as Germany’s largest department-store chain, were valued at more than €23 billion at the end of last year. 

To fund his empire building, the 46-year-old Benko gained the trust of Europe’s elite, counting Austrian construction tycoon Hans Peter Haselsteiner, German transportation magnate Klaus-Michael Kuehne and France’s Peugeot family among his investors. 

Surging construction costs and higher interest rates have forced Signa Prime to halt work at some key development projects, including the flagship Elbtower high-rise in Hamburg. While there will likely be investor demand for trophy assets, Signa’s development projects may be more complex to unload. 

Frothy valuations could leave little room for unsecured creditors to recover funds once project financing is accounted for. And then there will likely be disputes between different parts of the group. 

For Signa Holding alone, creditors total 273 entities, including units, banks and service providers such as dry cleaners, restaurants and lawyers.