This famous French low-cost decoration brand is in great difficulty, will the stores close?

The French brand GiFi, well known for its decorative items and attractive prices, is going through a critical period. Founded 45 years ago by Philippe Ginestet, the company is facing serious financial difficulties and will soon change ownership. An uncertainty which greatly worries its 6,500 employees in France and raises many questions about the future of stores.

At the age of 70, Philippe Ginestet decided to hand over, as his lawyer Christophe Dejean confirmed on Friday. After having managed the company for almost half a century, the founder wishes to sell the brand to guarantee its future development. “Philippe Ginestet’s absolute priority is to hand over the reins in the best possible conditions to develop this brand which has everything to become number one in its sector”, explained Me Dejean.

Finances under pressure

The sale, which would only concern the commercial activity and not the real estate assets, is currently being prepared. The Lazard bank was mandated to collect offers, with a deadline set for this Monday, as explained The Telegram. GiFi, which achieved a turnover of 1.3 billion euros last year, is however in difficulty for several months. In March, the company had already negotiated a rescheduling of its debt with its financial partners, an operation made necessary by a “computer switch” poorly controlled by mid-2023. Despite this agreement, the group continues to come under pressure, particularly from suppliers who are awaiting payment.

“We are on the street, the number is not there, we are really in the hole”, deplores a staff representative on condition of anonymity. The latter also reports that many employees have left the company, sometimes under pressure from management. The situation causes deep unease among employees, who regret lack of communication from management. Despite requests and reminders, employees deplore not having information on what is happening.

A potential takeover and uncertainties

According to rumors relayed by employees, Alexandre Zouari, owner of the Maxi Bazar and Stokomani brands, could be interested in a buyout of GiFi. A rumor recently confirmed by Le Figaro which reveals that a letter of intent from the family group has been filed “because they can’t not look.” For unions and employees, the priority remains clear: preserving jobs. With more than 700 stores spread across 17 countries, the stakes are high for the brand which employs the majority in France.

The future of GiFi will largely depend on the takeover proposals that will be presented in the coming days. If a solid buyer is found, the brand could hope to relaunch itself and regain its place in a competitive market. Conversely, a lack of a quick solution could lead to store closures and layoffs, a scenario feared by employees

Passionate about women’s news, Agathe has been deciphering the latest trends for aufeminin since 2022. Her favorite areas? Psychology, nutrition and well-being advice, without forgetting the tips…