What: Croatian retailer Nama's Zagreb department store, valued at €34.5 million, enters structured auction process with employee protection requirements, highlighting evolving approaches to retail property restructuring.

Why it is important: This case demonstrates how European retailers are balancing property value optimization with employee protection during restructuring, setting precedents for future retail bankruptcies.

A significant retail restructuring is underway as Nama's Zagreb department store, located in the city's main square, enters a structured auction process with an estimated value of €34.5 million. The Zagreb commercial court has established a tiered pricing structure for the auction, with minimum acceptable bids set at 75%, 50%, and 25% of the estimated value for the first three rounds, followed by a potential €1 starting price in the fourth round. Notably, the sale includes specific conditions to protect the workforce, requiring the future buyer to maintain business operations and retain all 160 existing employees for two years post-acquisition. The store has continued to operate throughout the bankruptcy procedure, demonstrating a commitment to business continuity during the restructuring process. This approach reflects a balanced strategy that considers both property value optimization and workforce stability.

IADS Notes: Recent developments in European retail restructuring demonstrate evolving approaches to property valuation and employee protection. According to Fashion Network in April 2024 , Galeria Karstadt Kaufhof's insolvency proceedings highlighted the importance of balancing business restructuring with workforce preservation, similar to Nama's requirement to maintain 160 jobs. Fashion Network's additional April 2024 coverage  of Galeria's closure of 16 stores shows how location-based decisions and property valuations impact restructuring strategies. Inside Retail's December 2024 report  on Coin's relaunch plan reveals similar patterns in Italian retail, where employee protection measures are balanced with property portfolio optimization. This trend is further contextualized by WWD's January 2024 coverage  of Signa's bankruptcy, demonstrating how European retail property valuations are being reassessed in distressed situations. These developments show a consistent pattern across European markets where retailers are implementing structured approaches to property valuation while maintaining workforce stability during restructuring processes.

Department store of Croatia's bankrupt Nama to be put up for sale