Florin Panea, owner of Leonardo, a retailer under insolvency for two months, is considering, among others, attracting an investment fund in its shareholder structure in a bid to raise cash to pay its almost 100m-euro debts.

Leonardo, the biggest footwear retailer, with 136m-euro turnover last year, this autumn filed for insolvency pressured by creditors, as well as a result of the 25% decline in sales this year.

"There are several funds we've been in contact with so far, but talks are at an early stage as we haven't finalised our reorganisation strategy. Should Leonardo's business generate the necessary capital to cover debts, we will not need a capital inflow. There is also a worst case scenario, where our reorganisation plan will not work and this very much depends on the trend of the market, and then we will need the help of an investment fund," stated Radu Lotrean, managing partner of Casa de Insolventa Transilvania (Transylvania Insolvency House), in charge with the reorganisation of Leonardo network.

Lotrean does not provide any details on the stake that could come to be owned by the investment fund.

This is the first statement on Leonardo's possible move to attract an investor in its business, because Florin Panea is one of the Romanian entrepreneurs who did not like such an option when the market experienced a sales boom, preferring financing through bank loans.

Lately, the businessman has not said much about the company's reorganisation strategy, with answers to ZF's requests for comment being provided by Radu Lotrean, who spends a lot of time at Panea's side within the company.

Lotrean says that should Leonardo decide to take in an investment fund, the deal could take place as late as the end of the first quarter of 2010.

Leonardo is now working to finish the lenders' table that should be submitted by March 1, 2010. W