Slovenian fashion retailer enters receivership after failed debt plan

Sportina, a Slovenian fashion retailer that operated over 300 stores across the Balkans in its heyday, has been placed in receivership after an attempt at a court-mandated debt settlement plan failed. Creditors have reported more than €67 million in claims.

Receivership procedure was launched by the Kranj District Court on 6 November after creditors failed to support the debt settlement plan. They have until 6 February next year to report their claims in the new procedure, CE Report quotes The Slovenia Times.

In the debt enforcement procedure, 644 creditors reported a total of €67 million in claims. The biggest creditors are NLB bank with €12 million in claims and Giorgio Armani, the fashion brand that Sportina owes €5 million.

According to a report by Forbes Slovenija portal, Sportina owners have also come to a conclusion that keeping the company in business would not be viable. The company's 75% owner is the Slovenian equity fund Alfi.

According to the business credit rating portal Ebonitete, Sportina posted over €19 million in net loss last year and only €17 million in revenue. The latter figure is down from €40 million in 2022.

The company has continued to make losses this year, incurring over €2 million in the first three quarters of the year, according to the newspaper Delo. By the end of September the company had €38 million in negative capital.

Only six Sportina stores have remained operational in Slovenia till today. The company employed 39 people at the end of September.

This is a far cry from its heyday when Sportina operated over 300 stores in the Balkans and its owner Bahtijar Bajrović ranked as one of the wealthiest Slovenians.

Sportina stores and stocks in the other countries of the former Yugoslavia have been acquired by Fashion Company from Serbia, also known by its brand name Fashion&Friends.

The Slovenian part of the business, including 14 stores and the Parfois fashion accessories shop, was subjected to the court-mandated debt restructuring in July last year.

According to Delo, Fashion Company will fill the gap on the Slovenian market of premium fashion with its Fashion & Friends stores, just like in the Balkans. The company registered its subsidiary in Slovenia in March.

Photo: Anže Malovrh/STA