Groupon to exit local business in Italy following negative tax assessment ruling

The company said, “Second, moving to the topic of Italy. As previously disclosed, we received a negative ruling related to a tax assessment for one of our Italian subsidiaries, Groupon S.r.l. In April 2024, Groupon S.r.l. paused the sale of local vouchers in Italy and the Company has been evaluating its options regarding operations in Italy. After a careful review of options, in July 2024, we decided to exit the local business in Italy. We expect to incur total pre-tax restructuring charges of up to $7.0 million in connection with the exit. The restructuring actions are expected to include an overall reduction of approximately 33 positions, with the majority of these reductions and payments expected to occur by the end of 2024. The Company does not expect incremental financial exposure that exceeds the assets of Groupon S.r.l. As of December 31, 2023, Groupon S.r.l. has assets of approximately EUR 48 million, made up largely of intercompany receivables and includes approximately EUR 1 million in cash and cash equivalents. Overall, while I am frustrated by the slow start to the third quarter, we are in a strong position to weather this minor set back. While progress in transformation is not always a straight path, I am confident that our transformation plan focused on driving profitable top line growth can generate attractive returns for our shareholders over the long-term.”