The GiFi stores group, in difficulty, announced on Friday that it had managed to convince its banks to support it with a view to a financial restructuring, which involves in particular the establishment of new governance and should enable it to ensure its future.
To do this, the founder of the bazaar brand, Philippe Ginestet, 70 years old, is stepping back from the operational orders of the company which “will be entrusted to a management board”while a “3-year strategic plan will be put in place for the renewal of the group”GiFi said in a statement.
“I leave my operational functions with the feeling of accomplishment”explains Philippe Ginestet, who has led the group since 1981 and will become chairman of the supervisory board as part of the restructuring.
This decision is not a surprise: in mid-November, GiFi’s lawyer stated that “top priority” by Philippe Ginestet was “hand over in the best possible conditions” to ensure the development of the chain which employs some 800 people in Lot-et-Garonne and 6,500 in France.
Potential buyers had expressed interest but none made an offer.
For Philippe Ginestet, this change in governance “is part of the desire to preserve the roots of the company”.
The group’s lawyer, Christophe Dejean, told AFP that the finalization of this restructuring plan “will ensure the sustainability of the company in the best interest of stakeholders, in particular employees”while the group’s unions feared a departure from Villeneuve-sur-Lot.
“Renewal plan” to build
An extraordinary meeting of the Social and Economic Committee (CSE) of GiFi stores, scheduled for Friday, was finally brought forward to Thursday in order to warn the authorities before concluding the agreement.
The creditor banks of the store chain have agreed to erase 470 million euros of debt in exchange for Philippe Ginestet’s commitments, as revealed on Wednesday by the media La Lettre.
The latter must, in addition to its withdrawal from the operational management of the group, deposit as security 270 million euros from its controlling holding company, after sales of assets and company shares, also confirms a source close to the case.
“Very significant additional liquidity will be provided through new financing granted to the Philippe Ginestet Group”also assures Me Dejean. And “GiFi will once again have the resources and flexibility to execute its near-term strategy”he adds.
According to the group’s press release, this strategy will be based on “a new commercial impetus” passing through the« innovation » and the « prix »as well as a “savings plan” on marketing and logistics.
But this “renewal plan” remains to be built according to the group, pending the establishment of the new management board.
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.
In 2024, GiFi achieved a turnover of 1.2 billion euros.