The owners of Lesnina, the largest Slovenian furniture retailer controlling a quarter of sales in Slovenia and holding a strong market position in the region, have been forced to sell their company to the Austrian XXXLutz due to significant credit liabilities that are soon due, Slovenian media report.
According to media reports, the company Siringa, through which the ownership interests in Lesnina are realized by Lesnina’s managers, is saving its financial position by selling shares to a strong Austrian company, as it must repay €99.26 million in loans taken in 2008 from several domestic banks, primarily from Nova Ljubljanska Bank and Banka Celje, by August 8 of this year. As reported by the Slovenian business daily “Finance,” some Slovenian furniture manufacturers fear that the large Austrian company will dictate lower purchase prices by taking over Lesnina’s network, while others emphasize that they are not afraid of new conditions for selling their products as they have previously collaborated with the Austrian company, which sees Lesnina as a “springboard” for a stronger presence in Southeast Europe, through Lesnina’s sales network that has expanded in recent years, especially in Serbia. Details about this acquisition announced yesterday will be known next month, after the sale of Lesnina is confirmed by the Slovenian competition market regulator. The Austrians have promised to retain the Lesnina brand and its current management. Last year, Lesnina, with 1,100 employees, achieved €200 million in sales revenue and a net profit of €8.2 million. The Austrian company XXXLutz employs 16,600 workers and operates in Austria, Germany, the Czech Republic, Slovakia, and Hungary. (H)
