(Yicai) May 23 -- Suning Holdings Group has failed to repay a loan, leading the struggling Chinese electrical appliances retailer to lose its controlling stake in Italian soccer titan Inter Milan after eight years at the helm.

Oaktree Capital Management took ownership of Inter by taking a pledged equity after the three-time European and 20-time Italian champion failed to pay off the principal and interest in time on a EUR395 million (USD428 million) loan, the Los Angeles-based asset manager announced yesterday.

In May 2021, Inter secured a three-year EUR275 million loan from Oaktree at an interest rate of 12 percent a year against a pledge of a 99.6 percent stake in the club. The equity pledge included Suning's 68.55 percent and Hong Kong-based LionRock Fund's 31.05 percent stakes.

Suning became Inter's majority shareholder in 2016 by subscribing to new shares and acquiring old stock for EUR270 million. Two years later, Zhang Kangyang, the son of the Chinese firm Chairman Zhang Jindong, became the club's youngest president at 27.

Inter returned to winning ways under Zhang, claiming the Serie A title in 2021 after a decade and finishing as runners-up in the UEFA Champions League last year. The club became only the second one to win 20 league titles after being crowned champions with five games to spare this season.

Suning has been facing financial pressure and has been in a debt crisis since 2020. The Nanjing-based firm has tried digital transformation to cope with the impact of e-commerce platforms in recent years, but the strategy failed to yield results.

In 2021, Suning transferred the controlling stake of Suning.Com to an industrial fund backed by state-owned capital in Jiangsu province, while Zhang Jindong resigned as chairman of the e-commerce business. Jiangsu Suning Football Club shut that same year just after winning the Chinese Football Association Super League.

Editor: Martin Kadiev