MILAN – Coin SpA is among the growing number of retailers feeling the pinch of growing inflationary pressure and reduced spending capacity, which has burdened its business with a heavy debt.
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The Italian retailer said Friday that a Venice court approved its admission to a “negotiated composition” measure aimed at protecting the company as it restructures its debt, outlines a new business plan and eyes investors.
As per Italian law, the measure mediated by the Chamber of Commerce allows companies with healthy revenues and profits to efficiently negotiate a debt repayment plan with creditors.
The company’s current debt, mainly toward banks, stands just above 230 million euros and financial sources said that repayment is due by the end of the year.
In 2023 Coin SpA logged 280 million euros in sales, with net profits amounting to 15 million euros. In the 12 months to Dec. 31, earnings before interest, taxes, depreciation and amortization totaled 8 million euros.
Coin SpA also confirmed it is opening up to potential investors and according to sources has hired consultancy and adviser Kpmg to define a new business plan, and find suitors in the private equity and industrial space.
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A financial source said that about 10 parties have already expressed their interest, further reinforced by the company’s admission to the “negotiated composition” procedure which ensures business continuity.
The retailer manages 37 directly operated stores in Italy and 119 shops under the Coincasa homeware banner in the country and abroad. It also comprises the Coin Excelsior premium contemporary department stores in Rome, Milan’s CityLife shopping district and Corso Vercelli, Trieste and Verona.
Coin SpA was acquired by Centenary SpA in March 2018 from British private equity firm BC Partners. Marco Marchi, founder of Liu Jo and of fashion holding Exelite, previously known as Eccellenze Italiane Holding, or EIH, bought a minority 15 percent interest in the retailer through a capital increase in 2019.
Marchi currently serves as president of Coin SpA working alongside chief executive officer Ugo Turi, named to the role in 2023.
Coin was founded by Vittorio Coin in 1916. In 1974, grandsons Vittorio and Piergiorgio took the helm of the family company. In 1999, the Coin Group was listed on the Milan Stock Exchange. While run by the founding family’s fourth generation, the Coin Group was in 2005 acquired by European private equity concern Pai Partners and, two years later, British-based BC Partners took control of the Coin Group and delisted it.
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