Mercator selling Modiana and Intersport – Negotiations with potential buyers in progress

(Photo: Mapei)

Mercator is selling its investments so that it may focus on its main activity, trade.

The purchase of Modiana is currently being negotiated by Mercator with the entrepreneur Goran Kristan, owner of two companies for retail and wholesale of the German brand Tom Tailor in Slovenia and other South East European markets. Kristan's partner is one of India's biggest textile manufacturers. It is to be assumed, then, that, following the change of ownership, the change in the range of brands on offer in Modiana will take place as well.

Modiana, which employed 685 people at the end of 2015, is present in Slovenia too, where it owns 48 stores, and in Croatia, Serbia and Bosnia and Herzegovina. Its franchises include Fashion Avenue, Beautique, Maxi and Modna Kuca in Maribor.

Mercator is selling Modiana's business operations, but not its real estate. The new owner will be renting it long-term.

Due to losses made by its textile branch, Mercator has closed down several unprofitable units in Serbia and Croatia. Modiana, which otherwise generates over 3.5% of Mercator Group's profit, operated with losses last year as well.

Intersport ISI, on the other hand, is considered to be one of Mercator's most profitable subsidiaries. A binding bid was made by the Polish private equity fund Enterprise Investors, according to the findings of our portal. It has invested EUR 2.4 billion in 113 enterprises.

Mercator is only selling the franchise in several markets of the region – from Slovenia to Albania. The owner of the franchise is the Swiss Intersport Group, the world's largest sporting goods retail network.

There were 356 employees in Intersport ISI at the end of last year. Of the 93 retail spots, 35 are in Slovenia. When franchise trading is taken into consideration, there are 110 Intersport stores in the region, and it is expected that the new owner will primarily invest in expanding to the Serbian and Croatian markets.