The struggling store chain GiFi (6,000 employees) has convinced its banks to support it with a view to a financial restructuring, which involves the establishment of new governance and should enable it to secure its future.
The founder of the bazaar brand, Philippe Ginestet, 70, is stepping back from the operational orders of the company which “will be entrusted to a management board”, while a “three-year strategic plan will be put in place to the revival of the group,” GiFi said in a statement released Friday.
“I am leaving my operational functions with the feeling of having accomplished my duty,” declared Philippe Ginestet, who had managed the company since 1981 and will become chairman of the supervisory board as part of the restructuring.
It remains the majority shareholder via the GFG holding company with 60% of the capital, the rest returning to a trust via a partial conversion of the bank debt, according to the group's lawyer, Me Christophe Dejean.
In mid-November, the council told AFP that Philippe Ginestet's “absolute priority” was to “hand over in the best possible conditions” to ensure the development of the channel. Potential buyers had expressed interest but none made an offer.
For Philippe Ginestet, the change in governance “is part of the desire to preserve the roots of the company”.
As for the restructuring plan, according to the lawyer, its finalization “will ensure the sustainability of the company in the best interest of the stakeholders, in particular the employees”, while the unions feared a departure from Villeneuve-sur-Lot, stronghold of GiFi in Lot-et-Garonne where some 800 employees work.
“We are happy because we know that the boss wants to stay in Villeneuve-sur-Lot. We were afraid of being bought by an outside company,” reacted Franck Virlogeux, Force Ouvrière delegate, on Friday.
“Renewal plan”
According to Me Dejean, the creditor banks of the store chain accepted “a waiver of debts, half to the capital, to the tune of 250 to 350 million euros”. Mr. Ginestet will deposit “at least 100 million euros” as a guarantee, after having already injected such an amount in 2024, and the State will finally grant financial facilities to the brand.
“GiFi will once again have the resources and flexibility to execute its short-term strategy,” summarizes the lawyer.
-This agreement must be validated within two weeks by the Toulouse commercial court, which opened a conciliation procedure a year ago between Gifi and its creditors.
According to the group's press release, commercial recovery will involve “innovation” and “price”, as well as a “savings plan” on marketing and logistics. But this “renewal plan” remains to be built, pending the establishment of the new board.
The unions do not hide the fact that they expect a social plan. In a press release, CFDT elected officials indicated that they would be “uncompromising regarding the consequences on employment of these purely financial agreements”.
“We know that there will be a restructuring, it will be done in consultation and we will do everything to preserve jobs,” declared the FO trade unionist for his part.
In addition to competition from Action or Maxibazar stores, as well as internet platforms such as the Chinese site Temu, GiFi's activity was damaged by a change in IT system during 2023.
The group, which achieved a turnover of 1.2 billion euros in 2024, has suffered losses for two years, the first since its creation.
At the end of March 2024, he obtained a rescheduling of his debt after requesting help from the Interministerial Committee for Industrial Restructuring (Ciri), a government service responsible for supporting companies in difficulty.
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