Iconic Zagreb department store Nama to close

The news in Croatian

1. stečaj  (m.)
   pravni postupak koji se pokreće kada poduzeće ili osoba više ne može plaćati svoje dugove ↩︎
2. dug  (m.)
   novac ili druga obveza koju netko mora vratiti jer je posudio ili nije platio na vrijeme ↩︎
3. preuzeti
   uzeti na sebe brigu, odgovornost ili vlasništvo nad nečim ↩︎
4. radnik  (m.)
   osoba koja radi za poslodavca i za to dobiva plaću ↩︎
5. građanin  (m.)
   stanovnik grada ili države koji ima određena prava i dužnosti ↩︎
6. rastužiti
   učiniti nekoga tužnim, izazvati tugu kod nekoga ↩︎

Translation

Text comprehension

Question 1: Why is the Nama department store building in Zagreb being sold?

Question 2: What must the new buyer do with the workers and the goods?

Vocabulary

Croatian	English
stečaj  (m.)	bankruptcy
dug  (m.)	debts
preuzeti	to take over
radnik  (m.)	worker / employee
građanin  (m.)	citizen
rastužiti	to make (someone) sad

Read the full story

The historic Zagreb department store Nama in Ilica Street is set to close and cease trading under the Nama name, according to the court-appointed bankruptcy administrator, Damir Mikić. The decision follows an ongoing process to sell the building, a well-known landmark in the very centre of Croatia’s capital.

The store in Ilica 4–6, often described in Croatian media as a legendary department store, has long been associated with everyday shopping in Zagreb. For many local residents, it symbolised the era of large state-owned department stores in the former socialist Yugoslavia. Today, however, Nama d.d. is in bankruptcy proceedings, and the sale of its key properties is being used to pay outstanding debts.

The company Izbor šesti offered about €17.4 million for the Ilica building at a second public auction in November last year and has already paid a deposit of just over €5.1 million. Even so, the building does not yet have an official new owner. A sale becomes final only when the bankruptcy judge issues a formal decision and the full purchase price is paid, together with several special conditions, including the takeover of staff and stock.

Before confirming the sale, judge Nikola Ribarić asked three public bodies – the Croatian state, the City of Zagreb and Zagreb County – whether they wished to use their pre-emption right to buy the property instead of the private bidder. According to the state’s written reply, the Ministry of Physical Planning, Construction and State Assets decided not to use this right. The administrator Mikić also stated that, as far as he knows, neither the City of Zagreb nor Zagreb County chose to exercise pre-emption.

At the beginning of this week, customers arriving at the store saw signs announcing a “clearance sale due to the closure of the department store”, with discounts of up to 30 percent. The posters, showing a blue “broken heart” symbol linked to Zagreb, thanked customers for their loyalty over the past 140 years and were signed “Your Nama”. Mikić explained that this campaign was launched by Nama’s marketing department within the bankruptcy process, not by the potential buyer.

One of the key conditions attached to the sale is the future of the workforce. The prospective buyer will be obliged to take over around 140 current employees, as well as the existing inventory and goods, for a period of two years after the handover. However, business activities will not continue under the Nama brand; legally, the company Nama d.d. in bankruptcy will disappear from the city centre.

This also affects the smaller remaining store, often called the “little Nama” on Kvaternik Square. Once the sale of the Ilica building is completed, a similar sale process is expected for the Kvaternik Square department store, under the same general conditions. According to Mikić, Nama still owes its creditors approximately €25–30 million that have not been settled. The money from the Ilica sale alone will not be enough to cover all claims, which is one reason why the second building must also be sold.

The company Izbor šesti, listed in the Croatian court register, has its headquarters in Solin, near Split, and a founding capital of €2,500. It was established in 2025 by Nina Banović and Ivan Budalić, with Andrija Banović and Ante Budalić as directors. Croatian media reports describe the Banović family as former owners of a major optical retail chain, while the Budalić family is reported to be active in the real-estate sector, focusing on renting and managing commercial properties.

For now, no official development plans for the Ilica building have been presented by Izbor šesti. Some media outlets quote market speculation that, after the obligatory two-year period during which the current situation must be maintained, the building could host international fashion chains such as Zara. The potential new owner is said to have experience with such brands in another former department store in Split. Other rumours suggest that part of the building might one day be turned into a boutique hotel. These ideas, however, remain unconfirmed and are limited by the building’s protected status.

The Nama building in Ilica is one of Zagreb’s most recognisable properties from the late 19th century. It originally housed the Austrian-owned department store “Kastner & Öhler”. In recent years, on the initiative of the City Institute for the Protection of Cultural Heritage, it has been entered in Croatia’s Register of Cultural Goods. This means the building enjoys preventive protection as an individual cultural asset for a defined period.

The protective regulations require the preservation of the historic façade, height, volume and key interior elements. Importantly for any investor, they also state that the building should retain a commercial or retail function. While this does not completely block changes in use, it restricts major structural alterations and any full conversion into functions that are not primarily commercial.

For many residents, the closure of Nama in Ilica marks the end of an era in Croatian retail history. From the perspective of city planning and cultural heritage, attention is now focused on how the new owner will balance modern commercial use with the building’s protected status and the employment of its existing staff. The final decision of the court and the concrete plans of Izbor šesti will determine what role this landmark will play in the future daily life of central Zagreb.

Info: ‘Croatian Learner News’ is a service from ‘Let’s Learn Croatian’, a language school dedicated to teaching Croatian through various online courses as well as opportunities to learn Croatian in Croatia. It provides updates, resources, and information for learners who wish to study the language from home or while staying in Croatia.