Studenac files for stabilization proceedings with 450 million euro debt

Studenac, the largest grocery chain in Croatia by store count, filed for stabilization proceedings after failing to secure an extension on its bank loans, Money.bg reported. The company operates more than 1,400 stores and employs over 7,000 people across the country, serving both urban neighborhoods and small rural communities.

Stabilization Filing Follows Blocked Bank Accounts

Financial agency Fina records show that the company’s bank account has been blocked, although retail locations continue to operate normally. Through the stabilization procedure, Studenac aims to establish a formal framework to restructure company finances and reach a binding agreement with banks, suppliers, and other creditors. Without this legal protection, the business faces a significant risk of being liquidated in parts. Polish private equity fund Enterprise Investors has owned the chain since 2018 through Polish Enterprise Fund VIII, expanding its footprint from roughly 384 locations to more than 1,400 through organic growth and the acquisition of smaller regional networks.

Rapid Expansion Driven by Heavy Debt

The rapid retail expansion relied heavily on borrowing. Bank liabilities reached approximately 288.9 million euros by the end of 2025, while other loan obligations totaled 160.5 million euros, bringing total debt close to 450 million euros. Company auditors flagged multiple financial rule violations during 2025 and issued warnings regarding significant uncertainty over the enterprise’s ability to maintain going concern status.

Revenue Growth Contrast With Sharp Profit Losses

Annual revenue climbed 12.7 percent to reach 854.4 million euros for 2025, yet profitability metrics deteriorated sharply across the board. Earnings before interest, taxes, depreciation, and amortization fell from 65.8 million euros down to 51.8 million euros. Earnings before interest and taxes swung from a profit of 22.5 million euros into a loss of 5.4 million euros, while net losses widened to 30.6 million euros from less than 1 million euros the prior year. Amortization expenses surged over 30 percent due to ongoing store openings and the integration of acquired chains, and personnel costs jumped 19.6 percent to outpace incoming revenue.

Studenac Seeks Debt Relief After Slovenia Expansion Fails

The stabilization framework provides the retailer with legal protection while negotiating debt relief terms with financial institutions and commercial suppliers. The business model relies on dense saturation of small proximity stores ranging between 60 and 180 square meters, offering between 2,000 and 4,000 stock-keeping units designed for daily shopping trips. Studenac expanded this operational footprint into Slovenia during 2024, but soaring fixed costs and debt servicing obligations ultimately outpaced the revenue generated by the sprawling store network.