What: Coin is struggling with its debt and looking for new financial partners.

Why it is important: This is the only alternative to La Rinascente in Italy when it comes to department stores.

Coin SpA, an Italian retailer, is currently addressing significant financial challenges, including high inflation and reduced consumer spending, which have contributed to a substantial debt burden. The company disclosed that a Venice court has approved its entry into a "negotiated composition" procedure, as authorized by Italian law. This legal measure allows businesses with stable revenues and profits to negotiate debt repayment plans with creditors efficiently. Coin's current debt, primarily owed to banks, exceeds 230 million euros and is due by year-end. Despite these financial pressures, Coin SpA reported 280 million euros in sales for 2023, with net profits of EUR 15 million and an EBITDA of EUR 8 million. The retailer is actively seeking investors to stabilize its financial position and has engaged KPMG to develop a new business strategy and attract investment from private equity and industrial sectors. About 10 potential investors have shown interest, bolstered by the security offered through the "negotiated composition" procedure that ensures ongoing business operations.

Coin operates 37 stores directly and oversees 119 Coincasa homeware stores both in Italy and internationally. Additionally, it manages Coin Excelsior premium contemporary department stores in key Italian cities. Coin was acquired in 2018 by Centenary SpA from BC Partners and saw further investment in 2019 when Marco Marchi, founder of Liu Jo, purchased a 15% stake. Marchi serves as president alongside CEO Ugo Turi, appointed in 2023. Founded in 1916 by Vittorio Coin, the retailer has undergone various ownership changes, including a public listing in 1999 and acquisitions by Pai Partners in 2005 and BC Partners in 2007, which later delisted the company.

Heavily indebted retailer Coin opening up to new investors