The main objective of this thesis is to investigate and analyze the role and impact of the state in the implementation of restructuring and recovery measures for Varteks, a textile industry company based in Varaždin, Croatia (hereinafter referred to as Varteks d.d.) during the observed period. The thesis aims to identify the primary causes of the crisis, analyze the company's operations through selected financial indicators, quantify the effects of the restructuring measures on business performance, and answer the research questions posed. The theoretical section of the thesis explores the concepts of financial crisis, restructuring, and recovery, as well as the policies, guidelines, and regulations concerning state aid with respect to the state's role in the restructuring of the observed company. The research findings indicate that Varteks d.d. did not successfully implement the restructuring and recovery process. The company continued to experience difficulties in meeting its short-term obligations, leading to insolvency and severe business consequences. Throughout the entire restructuring period, Varteks d.d. recorded a decline in revenue and profitability, accumulating losses in its operations.