Awaiting Judicial Decisions: The Struggle of SATO
Once a dominant name in the Greek furniture industry, the historic company SATO, founded by the Theodoridis family, finds itself in a challenging battle for survival. For over a decade, SATO has been under surveillance on the Athens Stock Exchange, grappling with debts amounting to €51.4 million and negative equity of €31.8 million as of 2023.
The Legal Entanglement
George Theodoridis, son of the company’s founder Sotiris Theodoridis, is currently waiting for a final verdict from the courts regarding the approval of a rehabilitation agreement signed in 2019. Initially, the Multi-Member Court rejected the rescue plan, prompting the listed company to appeal. This appeal was discussed at the end of March, leaving the Theodoridis management in a unique state of limbo until a definitive ruling is reached.
Moreover, starting next year, there is an additional concern regarding potential delisting from the Athens Stock Exchange, as regulations are tightening for companies that remain under surveillance for extended periods.
Market Value Plummets
Today, SATO’s market capitalization has dwindled to just €2 million, making it one of the lowest-valued companies on the Greek stock market. The stock price barely hovers around €0.03, having declined by at least 25% in the last year. To put this into perspective, in the landmark year of 1999, the stock reached as high as €19, and even in 2008, just before a significant downturn, it maintained a price of €3.
The Theodoridis family undoubtedly cannot be pleased with these results. Who can forget the ‘golden years’ of the company, which began in 1964 under the name METALLON HELLAS? It became synonymous with elegant and affordable furniture for countless households in Greece through its brands SATO and ENTOS. During its peak years, annual revenue soared to or exceeded €100 million, whereas now it barely reaches €20-21 million.
A Pivotal Period Ahead
The upcoming months are critical for this historic company, as the Theodoridis family hopes for a favorable decision from the judiciary to implement the rescue plan. This would provide new vision for the company, which now faces a fiercely competitive market landscape.
In summary, SATO stands at a crossroads, navigating through the complexities of financial and legal hurdles, with the hope of a comeback on the horizon.
(The above content is the result of journalistic research and does not constitute an endorsement for buying, selling, or holding any stock.)
