What: Coin Group initiates comprehensive restructuring plan affecting 1,331 workers and eight stores, implementing a three-pillar transformation strategy while addressing EUR 80 million in debt.

Why it is important: The comprehensive nature of Coin's restructuring plan highlights the interconnected challenges facing department stores, where financial restructuring must be balanced with workforce protection and operational transformation to ensure long-term viability.

Coin Group has unveiled a significant restructuring plan aimed at addressing its EUR 80 million debt while protecting its workforce of 1,331 employees. The plan, presented to government authorities, centers on three strategic pillars: store optimization through improved space management, merchandise mix enhancement, and service improvement through increased store staffing. Eight stores are scheduled for closure in 2025, beginning with Grugliasco in January, followed by locations in Rome, San Donà di Piave, Latina, Vicenza, Milan City Life, and Sesto Fiorentino.

These closures will impact 92 employees, including 50 in the Rome area. The company initiated a Negotiated Crisis Resolution procedure in June 2024 to ensure business continuity, enabling dialogue with creditors and implementing precautionary measures. Union representatives are calling for greater involvement in decision-making and detailed information about potential investors, particularly emphasizing the need for a social relocation plan for affected employees.

IADS Notes: Coin's restructuring announcement in December 2024 reflects broader trends in department store transformation across Europe. The company's EUR 80 million debt situation mirrors similar challenges faced by other retailers, as seen in August 2024 when Coin SpA entered a court-approved "negotiated composition" procedure despite reporting EUR 280 million in sales and EUR 15 million in net profits. The planned closure of eight stores aligns with industry-wide optimization strategies, similar to Galeria's successful restructuring in May 2024, which maintained 76 out of 92 branches while implementing comprehensive transformation measures.

Coin's three-pillar approach to business transformation echoes successful strategies seen in February 2024 with Peek & Cloppenburg's implementation of mixed-use concepts and space optimization. The focus on workforce management and store network rationalization follows patterns observed in March 2024 with KaDeWe Group's restructuring, demonstrating how department stores can successfully manage business model transformation while addressing workforce transitions.

Italian department store chain Coin defines new relaunch plan