The Studenac debt crisis is raising concerns about the future of Croatia’s largest retail network after the company accumulated nearly €450 million in bank debt and loan obligations.
The retailer is facing serious financial pressure following years of rapid expansion funded largely through borrowing. Overdue payments to major suppliers, including Fortenova, Podravka and Atlantic, have added to concerns about the company’s liquidity.
Studenac has not yet had its accounts frozen and no formal shutdown has been confirmed. However, auditors have warned of significant uncertainty surrounding the retailer’s ability to continue operating under current conditions.
Rapid Expansion Fueled the Studenac Debt Crisis
Studenac was founded in 1991 in Omiš as a family-owned company operated by Josip Milavić, initially focusing on Croatia’s coastal areas and islands.
Polish private-equity fund Enterprise Investors acquired full ownership of the company in 2018. Studenac subsequently launched an aggressive expansion strategy involving new store openings and acquisitions of competing retailers.
By the end of 2025, the company’s network had grown to 1,411 stores, while its workforce reached 7,149 employees.
The company’s ownership structure is now organized through Luxembourg-based Studenac Group S.A., while its ultimate parent company is registered in the Cayman Islands.
Studenac attempted to launch an initial public offering on the Zagreb and Warsaw stock exchanges in 2024. The company hoped to raise approximately €80 million in fresh capital, but the plan was canceled in late November of that year.
The retailer continued expanding without the expected capital and instead increased its borrowing during 2025.
Revenue rose by 12.5% to €854.4 million, but profitability deteriorated. Earnings before interest, taxes, depreciation and amortization fell from €65.8 million to €51.8 million.
Studenac reported a net loss of €30.6 million, compared with a loss of less than €1 million in 2024. Management attributed the result to higher depreciation, rising employee expenses and substantial inventory losses.
Auditors Warn of Significant Financial Uncertainty
Studenac increased its bank debt by approximately €47.7 million during 2025.
By the end of the year, the company had €288.9 million in bank debt and an additional €160.5 million in loan obligations, bringing the combined amount close to €450 million.
A total of €211.1 million in long-term loans was reclassified as short-term liabilities, increasing the immediate financial pressure on the retailer.
The company’s current assets stood at €151.4 million, while its short-term liabilities reached €529.4 million. Amounts owed to suppliers increased from €156.3 million to €171.8 million.
Auditors KPMG Croatia and TPA Audit reported that Studenac breached financial terms contained in its financing agreements during 2025. They expected the company to remain in breach through the third quarter of 2026.
At the time the financial report was prepared, banks had not formally waived their right to demand early repayment during 2026.
The auditors said this created significant uncertainty that could cast doubt on Studenac’s ability to continue operating. The banks’ next decisions are therefore expected to play a decisive role in the retailer’s future.
