Turkish home textile brand Madame Coco is closing in Russia, said ATER expert Natalia Kermedchieva.
„Madame Coco is closing in Russia. It is not a matter of closing individual stores or restructuring, but rather of completely ceasing the brand's presence on the market“, she said.
According to her, the Turkish home textile and home goods brand, founded in Istanbul in 2011, currently has over 700 stores in 23-24 countries.
„The positioning was based on the formula „accessible luxury“: premium visual language, satin bed linen, porcelain and interior decor at mid-prices, regularly supported by sales of up to 70-80%. My team has been negotiating the launch of this brand since 2022,” Kermedchieva said.
She added that the brand entered Russia in February 2023 and within two years had opened a network of stores with an area of 400-500 square meters on the ground floors of large shopping centers, from Mega Khimki to malls in Yekaterinburg, Grozny and Kazan. In early 2025, they announced plans for another 20 locations and flagship stores in all the capitals of the federal districts. The chain currently operates 29 stores in Russia.
“The shopping centers I contacted answered the question of what went wrong themselves. The story they described was surprisingly consistent. The company sent almost identical letters to its landlords announcing its intention to close back in May, long before the public announcement on social media, and by the time the official closure was announced, most stores had already been sold out and staff had received layoff notices,“ the agency's source said.
All sources point to the same reason: a decline in customer traffic and demand, which the chain could not compensate for given the existing rent and debt burden, Kermedchieva continued. Some locations cite the brand's attempts to negotiate a reduction in rents to optimize costs, but most landlords did not cooperate.
Others point to accumulated debt and the inability to service payments amid declining sales, which was the direct reason for declaring bankruptcy.
Those who have already closed
Madame Coco is not alone in this story. Turkish Chakra, operating in the same home goods segment, has already closed both of its stores in Moscow – in Aviapark and Afimall, Kermedchieva noted. “The overlap in the segment, geography and timing of the closures suggests that this is not just a management error on the part of one company, but a systemic problem faced by average Turkish home brands on the Russian market: a similar pricing model, dependence on traffic in top shopping centers and a similar breaking point when it drops,” she explained.
The debt burden in this case turns out to be a decisive factor and is especially heavy against the background of a functioning store economy: the stores were generating revenue, but the company was still unable to service the debt, the expert continued. This is not a temporary suspension or restructuring of the business, but rather a bankruptcy process: the company has filed the necessary documents, which means a managed liquidation, not a pause followed by a subsequent return. “According to my information, all stores in the chain will be closed by the fall, and 29 of them are practically sold out: the warehouse sale is essentially over and what is happening now is a technical suspension of operations before the official closure of the stores“, concluded Kermedchieva.