Playing a buffer role between the banks – from whom the founder of Gifi took out a loan of 100 million euros last May under the supervision of the interministerial committee for industrial restructuring (Bercy) – and Philippe Ginestet, the firm and the specialist in mass distribution have been carrying out their project in complete discretion for several weeks. If this plan were to be accepted by the banks, Philippe Brochard could play the role of administrative director alongside AlixPartners to lead the transformation of the brand. The plan would aim to make Gifi more operationally efficient, by avoiding costly overstocks, or by optimizing the offer, to thus compete with Action and Temu.
From a shareholder point of view, the matter remains complicated. Because Gifi, whose cash flow is dry, urgently needs funds. If it was once mentioned that Philippe Ginestet would sell the majority of the brand’s capital to his creditors, converting part of the debt into shares, nothing would be guaranteed today, as the manager is so attached and tied in his name. The businessman could also put the walls of his stores as collateral with banks, on a model similar to a mortgage. Financial elements which remain to be clarified urgently.
The project by AlixPartners and Philippe Brochard would in any case constitute a last chance plan for the non-food discounter, with a turnover of 1.3 billion euros, which – in addition to the failure of its IT system and the Covid crisis – must face increased competition.
In addition, the succession of Philippe Ginestet remains an increasingly threatening question mark for years. With the crisis shaking the brand, not sure that the self-made man 70 years old with a strong character cannot choose the name of his successor himself. Because in fineit will be the creditors who will have the last word.
-The outcome of the negotiations should therefore be known in the coming days. But all observers of the file agree on one fact: the explosive Philippe Ginestet could well seek to surprise everyone, from AlixPartners to Moez-Alexandre Zouari, with a new avenue of recovery.
