Zhang Jindong, the former owner of Inter Milan, is facing significant financial turmoil as three of his holding companies have declared bankruptcy and are now seeking debt restructuring. The announcement was made on February 7, 2025, following the acceptance of the bankruptcy petitions by the Nanjing Central Court on January 26.
This latest development marks another chapter in the decline of Zhang's once-prominent corporate empire, primarily built through the Suning Group, which he founded. The companies involved—Suning Appliance Group, Suning Holdings Group, and Suning Real Estate Group—have faced mounting challenges, largely attributed to failed investments totaling over 10 billion euros made between 2012 and 2020.
These investments included notable stakes in struggling giants like Carrefour and estate disasters, including Wanda and Evergrande, leading to substantial financial losses. Zhang's situation became even more precarious following his inability to repay debts, including approximately 395 million euros owed to US investment fund Oaktree which took control of Inter Milan last summer after foreclosure.
According to reports from Calcio e Finanza, the bankruptcy restructuring process will soon commence, with initial meetings slated between the creditors and the companies. Observers are closely following how this restructuring will impact Zhang’s remaining interests, including his stake (approximately 17.7%) in Suning.com, the cornerstone of his business operations.
This bankruptcy announcement follows allegations stemming from Rai 3's investigative program, Report, which examined the financial operations of Suning during Zhang's ownership of Inter Milan, highlighting potentially dubious sponsorships aimed at masking financial losses. Such scrutiny heightens the complexity surrounding Suning’s bankruptcy and Zhang's business strategies.
With Zhang Jindong wrestling with financial challenges on multiple fronts, the fallout from these events raises questions about the future direction of his enterprises and his ability to navigate this crisis successfully. Analysts and industry insiders are debating whether Zhang can rebuild or if this bankruptcy marks the beginning of the end for his corporate ambitions.
The upcoming discussions with creditors will be pivotal as Zhang seeks to stabilize his holdings and possibly return them to profitability. Each step will be watched closely to gauge not only his financial recovery but the broader ramifications for his business network, which at one point included significant ties to European football.
This situation serves as a cautionary tale about the risks inherent in high-stakes investing, especially at the intersection of sports and business. For Zhang, the road to recovery is fraught with challenges, but it is also filled with lessons for aspiring investors aiming to navigate complex market dynamics.
Despite the current downturn, the narrative of Zhang Jindong is far from straightforward. Should he successfully restructure his companies and learn from past missteps, Zhang may yet find ways to pivot and adapt to the changing business environment.