Gifi receives support from banks for financial restructuring, its founder Philippe Ginestet leaves his operational functions

A new page opens in the history of Gifi. In difficulty, it managed to convince its banks to support it with a view to financial restructuring. The creditor banks of the store chain have agreed to erase 470 million euros of debt in exchange for the commitments of its founder Philippe Ginestet, as revealed by the media on Wednesday The Letter.

The company will implement new governance. Philippe Ginestet, 70, will leave his operational functions which will be entrusted to a management board. He will become chairman of the supervisory board as part of the restructuring and will remain a main shareholder with the GPG entity. “I leave my operational functions with the feeling of having accomplished my duty,” said Philippe Ginestet. He had managed Gifi since 1981. At the same time as his withdrawal from the operational management of the group, he will have to deposit 270 million euros from his controlling holding company as security, after sales of assets and company shares.

Philippe Ginestet states: “These last two years have been a historic challenge to take on to save the work of a lifetime. Thanks to the support of our financial partners, the commitment and loyalty of our teams and our suppliers that I thank you from the bottom of my heart, I am proud to allow Gifi today to pursue its destiny with complete peace of mind.”

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Innovation and price

Faced with Gifi's difficulties, buyers had expressed their interest but none of them had submitted an offer. Before concluding the agreement, an extraordinary meeting of the Social and Economic Committee (CSE) of Gifi stores, scheduled for this Friday, was finally brought forward to Thursday.

Gifi announces “a new commercial impetus” which will involve “innovation”, price” but also a “savings plan” on marketing and logistics. A “3-year strategic plan will be put in place for renewal of the group”, indicated the brand in a press release.

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Supply difficulties, falling turnover: how an IT problem shook the Gifi group

Difficulties and strong competition

Gifi employs 800 people at its head office in Villeneuve-sur-Lot in Lot-et-Garonne and 600 in France with 630 stores in France and internationally. Its activity was undermined by a change in IT system in 2023, very unfavorable weather for the sale of spring/summer 2024 products but above all by competition from stores like Action or Maxibazar – cheaper than Gifi – and websites such as the Chinese Temu. Gifi achieved a turnover of 1.2 billion euros in 2024.